Ipod Nano problem - always restoring itself

Can anyone please help me? I bought my ipod just under a year ago (2nd Nov) but Apple says its out of warranty.
1st gen ipod nano 4gb, windows XP Pro, itunes (v7.0.1.8) and ipod (v1.3)
When i connect it to iTunes, and transfer music to it, if switches itself off and says 'file cannot be found' or something like that. then when it reconnects to itunes, it has just lost all the music i transfered to it! This has happened about 6 times in the last few weeks.
I have tried all of the following:
reinstall itunes
new usb lead
restore ipod
update ipod and itunes
reboot PC
reboot ipod
cry lots lol
I am going to be so gutted if my ipod is broken, and I cant work out what else to do.
Please someone help me - also if i have receipt for purchase of ipod, will apple believe it is still in warranty?
Tracey

Welcome to Apple Discussions!
What kind of noise are you getting? If the sounds were a clicking kind of sound:
When clicking and selecting something while on your iPod, it is natural that it sometimes makes some clicking sounds, as it is accessing the hard drive, so it can play a song, for example.
If the clicking sounds seem to be especially rythemic, that isn't good.
The first thing to do is reset your iPod.
Also, see this link; the Five R's may be worth a try:
The Five R's
If you could describe the noise for us, that would be good.
I hope this helps.
~~Kylene

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