IPod Nano (1GB, 1st Gen.) can't be recognized by iTunes

Question

I have been having problems Sync'ing my iPod nano with iTunes, however, the more I read help articles and follow the steps, the worse the problem gets. (I'm on a PC using Windows XP)
I've gotten to the point where I updated my iPod software in Disk mode (up until then it was being recognized only in Disk mode), but when iTunes failed to recognize it when not in Disk mode I preceded to restore my iPod to factory settings, as instructed in the help articles.
Now, up until then, I still had music in my iPod, and I was being able to charge it and listen to my music even though I couldn't sync the iPod anymore. After restoring, I not only lost my music (which I was aware of), but it STILL did not fix my problem. So I started to get annoyed.
I then noticed that my iPod was being recognized by My Computer, just not by iTunes, so I began to perform the steps indicated in the following article:
http://docs.info.apple.com/article.html?artnum=93716
I restarted my iPod service - no luck
I removed iTunes - no luck
I emptied my Temp directory and restarted...
That's when iTunes stopped recognizing my iPod altogether, not even in Disk mode. Not only that, but it seems to have affected the iPod itself, since it won't turn off or exit Disk mode anymore. So now I'm scared of going though with any more steps on whichever "help" articles and making the problem even worse than it already is (if that's possible).
The only other information I can provide is that windows is still recognizing my iPod, no problem, and when I connect my iPod, iTunes actually launches... but DOESN'T recognize a thing. So I ran a diagnostics using iTunes and here's what I got (iPod diagnostics):
Microsoft Windows XP Professional Service Pack 2 (Build 2600)
INTEL_ D945GCL_
iTunes 7.3.2.6
iPodService 7.3.2.6 is currently running.
iTunesHelper 7.3.2.6 is currently running.
Current user is an administrator.
The current local date and time is 2007-08-30 11:53:26.
Connected Storage Devices:
Unidade de disco, MAXTOR STM3160211AS, Bus Type ATA, Bus Address 0,0
Unidade de disco, MAXTOR STM3160211AS, Bus Type ATA, Bus Address 0,0
Unidade de disco, Apple iPod USB Device, Bus Type USB
Universal Serial Bus Controllers:
Standard Universal PCI to USB Host Controller. Device is working properly.
Standard Universal PCI to USB Host Controller. Device is working properly.
Standard Universal PCI to USB Host Controller. Device is working properly.
Standard Universal PCI to USB Host Controller. Device is working properly.
Standard Enhanced PCI to USB Host Controller. Device is working properly.
No IEEE 1394 Host Controller found.
Connected Device Information:
IPOD (H:\), iPod nano running firmware version 1.3.1
All green lights, and as you can see, according to iTunes, NO PROBLEM! Except that it won't recognize the iPod that the diagnostics says exists and reads... ?!?!?!
If anyone could shed some light on my situation, i would be VERY greatful!

Answer 1

I've experienced the same issues, but apparently went to the next level. My computer does not recognize the ipod at all. As soon as we put a 2GB nano on and updated the software the 1GB started having problems. When we went through the diagnostics and web support it got worse. When we called support and spent 90 minutes on the line it completely stopped working and I felt lucky that the new ipod worked. The 1GB now plays and works fine away from the computer and will recharge in the dock that is not hooked to the PC, but itunes does not recognize it and we cannot update with new music.
I took it to Mac authority who could not diagnose the problem and said they'd never seen or heard of this issue. They could not even make the Mac recognize it as an external drive. After spending $20.00 to just have it diagnosed, they told me it needed a new logic board which would cost between $59 and $89 less the $20 I'd already blown. I am MUCH less than satisfied with the results, and have been told that I could buy another one for $20.00 off and a small discount.
The problem is, the 1GB worked until the moment we added the 2GB, now my son is being penalized because my daughter got a new nano, and I'm expected to shell out more money....If you find a resolution that doesn't cost more than the worth of the ipod, I would love to hear it.