IPod Updater does not recognize iPod Nano

I installed the iTunes while charging my new iPod Nano 4GB from my USB port. iPod worked and was recognized during this process. After successfull ejecting and disconnecting I got the 'Folder icon with an exclamation point' in the iPod display. I followed the Apple hint on their www.apple.com/support/ipod homepage and downloaded the latest software iPod Updater (2006-06-28) and updated from 1.1 to iPod nano 1.2. In this process the Updater ended with saying that the software was updated, but that I had to wait for the iPod to quit/release the process, and it never did. It says 'Do not disconnect'. After ½ a day of waiting I had to disconnect it anyway. I thaught of 'Restore' the factory software but now Updater will not even see my iPod when I connect it. The Updater freezes and I have to 'End Process' from the Task Manager. iPod display keeps saying 'Do not disconnect' and shows a small 'sun' in the upper left corner with 'sunbeams rotating around the sun'. Can't find this symbol anywhere. Can't eject the iPod by software from neither the iTunes nor the 'Safely remove hardware' utility. When I pull out the plug from the iPod it resets and shows the Apple log and prompts me for selecting a language. The iPod 'About' panel shows that I have updated to software 1.2
I tried to follow this link down to the 'Remove iTunes' point, but no success sofar:
http://docs.info.apple.com/article.html?artnum=93716
Hope somebody can help a novice with iPod problems!
Dell Precision M70, laptop   Windows XP Pro  
Dell Precision M70, laptop   Windows XP Pro  

I have the same problem after update to sw 1.2.
And I have successfully get it back to normal by re-format the iPod-drive.
If you see windows recognise the iPod-drive. Try to re-format it (use FAT32). If you are success to reformat it, Ipod updater will recognise it and you can now do a 'Restore' to create the file structure back again for the Ipod-drive.
I continue to use the updated sw, v1.2. And hope it does not cause more problem as this one.
TDL
DELL I6000   Windows XP Pro  

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