My I Pod has a folder with exclamation mark

And isnt being recognised by my PC
Its alternating between apple logo and exlamation mark with a folder
I have tried update didnt work
So I need to restore it but now its not being recognised by my PC!
What can I do its driving me crazy!
I approached apple for a service (it has been repaired 4 times already) but they want like £169 (about $270) to service it
It ****!
Pleeeeeeease help me!
Thanks
Mark

"Please help me or should I just throw it out the window?!"
Hello Mark,
In fact you should throw it out the window with your window PC. I do not understand why there so many case about this problem and it must have something done with the window PC. I am a firm believer that if the iPod do not connect with a PC and it will work fine.
From past experience, it could be solved by putting it in Disk Mode and do a format, best is you can find a Mac, and let Mac to format it in FAT32. I did once in PC, just go to format it under the Disk Management, bear in mind you must do several attempts.

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    Hello,
    If a sad iPod icon or an exclamation point and folder icon appears on your iPod’s screen, or with sounds of clicking or HD whirring, it is usually the sign of a hard drive problem and you have the power to do something about it now. Your silver bullet of resolving your iPod issue – is to restore your iPod to factory settings.
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    Make sure you do all the following “TRYs”
    A. Try to wait 30 minutes while iPod is charging.
    B. Try another FireWire or USB through Dock Connector cable.
    C. Try another FireWire or USB port on your computer .
    D. Try to disconnect all devices from your computer's FireWire and USB ports.
    E. Try to download and install the latest version of iPod software and iTunes
    http://www.apple.com/ipod/download/
    http://www.apple.com/itunes/download/
    F. Try these five steps (known as the five Rs) and it would conquer most iPod issues.
    http://www.apple.com/support/ipod/five_rs/
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    http://docs.info.apple.com/article.html?artnum=93651
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    B. Still can’t see your iPod, put it in Disk Mode and connect with a computer, instead of doing a Restore on iPod Updater. Go and format the iPod instead.
    For Mac computer
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    2. Go to Tab “Partition”, click either “Delete” or “Partition”, if fails, skip this step and go to 3
    3. Go to Tab “Erase” , choose Volume Format as “MAC OS Extended (Journaled), and click Erase, again if fails, skip it and go to 4
    4. Same as step 3, but open the “Security Options....” and choose “Zero Out Data” before click Erase. It will take 1 to 2 hours to complete.
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    6. Open the iPod Updater and click “Restore”
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    Go to folder “My Computer”
    Hope you can see your iPod there and right click on the iPod
    Choose “Format”. Ensure the settings are at “Default” and that “Quick Format” is not checked
    Now select “Format”
    Eject your iPod and do a Reset
    Open the iPod Updater and click “Restore”
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    b. It is not a difficult issue for a Mac user to find a window base computer, for a PC user, if they can’t find any Mac user, they can go to a nearest Apple Shop for a favor.
    c. You may need to switch around the PC and Mac, try to do several attempts between “Format” and “Restore”
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    Your iPod warranty is expired
    You don’t want to pay any service charges
    You are prepared to buy a new one
    You can’t accept the re-sell value of your broken iPod
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    Sad Face on iPod for no apparent reason
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    Meeting the Sad iPod icon
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    Sad iPod solution
    http://discussions.apple.com/thread.jspa?threadID=412033&tstart=0
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