Ipod classic 160gb restart over and over and over and over and over

Hi fellas!
I've received my first iPod this past wednesday (30th January) and i already have problems with it!
I plugged it to my laptop to sync a few more musics and itunes told me there was a new update for the ipod software. ok.... apple's update seemed good! (i mean, i've changed to mac in the summer 07 and never had a problem with it, i just use windows for gaming...)
After the download and update there was some error and the ipod disappeared from the itunes! i decided to restore the ipod and now it's on an infinite loop of restarting...
i've seen a few comments to leave the ipod drain the battery until it asks you to recharge, but whenever i connect it, it just begins the same hideous cycle all over again! All it appears is the apple logo like when you turn it on! i've also uninstalled itunes and installed it again (itunes 7.6) but nothing changed.
the ipod is not recognized by itunes or my computer, so i can't try to restore through the disk or change the file type.
I can also hear the disk inside stopping and restarting several times, like if its damaged and cant read past a certain point.
This is really undermining my trust on Apple!
Has anyone been able to solve this issue?
thanks...
Message was edited by: karpov_gangrel

UPDATE!
I called Apple technical service and followed all of their steps. Since none of them worked, they are sending me a package for me to put my iPod in and send it back to them. A replacement should arrive 1-2 weeks after i send it back and with my personalized inscription. I'll keep everyone noticed when it arrives.
So, the lesson to be learned here is:
If you're under warranty, try some of the suggestions in this forum and, if it doesn't work, call Apple right away. They will take care of you!
It ***** not no have the iPod for a few weeks, but i prefer to have everything in perfect condition, than spending those 2 weeks trying all kind tricky and shady solutions...

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