New iPod Nano user, updated to 1.2, then boom!

Greetings.
I just tried to update the iPod Nano system software using the iPod Updater (for Microsoft Windows) software.
After it was done and it appeared successful, I safely disconnected the iPod Nano from the system. The Nano flashed the Apple/iPod logo and then the menu came up. It prompted me for the language (English), which is understandable as all of the the documentation I've read so far indicates some of the settings may be lost and need to be reset after a software update. After answering it (English), I noticed all of my copied music, podcasts, etc., were gone.
I promptly plugged it back into the system and iTunes didn't recognize it. In fact, iTunes just sat there for awhile.
I rebooted.
During the reboot process, I unplugged the Nano (which is safe to do as nothing has a lock on the device until the OS loads) from the system. I logged into XP, launched iTunes, plugged the Nano back into the system, and it still doesn't recognize it and just hangs.
Same procedure: rebooted the system.
This time, while the system was rebooting, I reset the iPod Nano via the two-button method. It seemed fine.
I logged into Windows and decided to "Restore" it to factory default with the iPod Updater software. I launched that program and when instructed to plug an iPod into the system, I did. The program just hangs.
iTunes loads and all of my songs, podcasts, etc., are there, but when I attempt to connect an iPod to this system, things get hosed. So, apparently this updated iPod (new) is hosing my system.
Any suggestions as I seem to be stuck?
Or should I just send it into Apple Service/Support?
AMD CPU, plenty o'RAM, GBs of disk, iPod Nano   Windows XP Pro  

A FIX !!!!!!!!!!!!!!!!!!!!!
Ive been reading this over and over on different threads - with the latest Ipod updater (not proven, but it happened for the first time with me) the memory on the iPod (my 5th generation nano) got cooked.
Symptoms after update:
- The little wheel on the top left corner of the Ipod would spin occasionally, the USB device icon would show up in the taskbar, but iTunes would not see it and the iPod updater would lock-up/freeze/hang when trying recognize the iPod.
- XP and W2K would sometimes freeze or lockup but always run slowly.
- When browsing to the available disk drives, the iPod would show up as a removeable drive and when clicking on it, it would say "Insert disk".
Days of madness follow:
I tried the 5 Rs and it did not work.
I tried disabling USB2 speeds and nothing.
I tried formatting it as suggested by one user (it made sense) thru MY COMPUTER/MANAGE/DISK DRIVES/ but it would not see the iPod as a disk drive there either to do that.
I tried 3 diff USB cables, 3 diff computers (1 XP and 2 W2Ks) - nothing but frustration!!!
Then, an epiphany. Looking at the back of the iPod and contemplating the dropping-it-from-your-waist fix someone had suggested (did I mention I was insane at this point?), I noticed this mystical symbol that I see every day on large, powerful looking silver boxes at work - an apple-esqe logo with a bite taken out of it. TAKE THE NANO BACK TO ITS CREATOR! IT WOULD KNOW WHAT TO DO!
The FIX:
But seriously, I plugged my death-dealing Nano(I wrecked the settings on my main machine trying to get it work) into a Mac G5 OSX10.4.7 machine and it came up, but would not work properly - yet. I then formatted the drive thru Disk Utilities as DOS(FAT32)and the Nano was reborn! Works on all systems immediately without hiccup!
If you are swearing, pulling your hair out and spitting on people you don't know due to frustration with your iPod exhibiting these problems, FIND A MAC with OSX10.4 (supporting USB interface) or an Apple store and tell them what to do if they don't know OR ship it to me and I will fix the **** thing for you in a day for the cost of postage - REALLY! I was on the verge of hopelessness and feel bad for all of the others out there going thru the same thing.
Apple has REALLY dropped the ball on this one thus far with the lack of info/fixes from a PC perspective.
Contact me at [email protected] if you want to take me up on the fix offer and otherwise, hope this helps!
W2K, XP, Unix and OSX machines   Windows XP   Running all platforms at work/home - great to troubleshoot>

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