Error with iTunes "The iPod Group Storage cannot be used with iTunes...."

I bought a usb hub to accomodate my multiple usb devices. I plugged my iPod into this and got the following error:
"The iPod Group Storage cannot be used with iTunes because it is not formatted properly."
I plugged the iPod into the computer rather than the hub. Same thing
Tried to restore, per the error message's direction. It says it has restored it to factory settings, then it brings up that message again.
I uninstalled and re-installed iTunes. Same thing. It was playing fine but it needs re-charging now and it won't because of the error.
Does anyone have any ideas? I don't know what to do now.
Thanks.

Try to reset your iPod using the recovery mode as described in this support article
However, this will erase the iPod completely. If you have an iTunes-backup on your computer you can restore your iPod settings later from the backup.
I have never tried this in WIndows, however. The procedure might be slightly differeent.

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