Recent iPod Updater has sabotaged my iPod!!

So I plug my iPod into my PC to put some songs on it, and I get a little window that says I need to download an update for my iPod. Ok, no problem. I download the file and install the Updater (to include restarting the PC afterwards). I run the updater and it begins doing some things to the iPod. The updater recognizes my iPod and even my name and the unit's serial number and all that.
Suddenly, there's an error message saying something about how the update failed or some such nonsense. When I try again, the Updater no longer recongizes my personal info and only gives me the option to RESTORE the iPod, not UPDATE. On top of that, my iPod will no longer start up properly even when disconnected from the PC.
I just get that dreaded Caution exclamation point atop a folder icon right after the Apple logo shows up. Then the unit turns off.
I can't believe that I am looking at possibly having to wipe my iPod because of a software issue from Apple themselves. It's a 60GB and it has a LOT of music that I don't want to have to find again. iTunes only has about half of the songs as I have changed PC's since I bought the iPod.
Also, I tried an older iPod Updater version, but that didn't work either.
Any ideas?
  Windows XP Pro  

Well, Tech Support mentioned iLounge software, but seeing even "My Computer" wants to reformat the device, they went on to say that my only option is to completely wipe the iPod.
So, in retrospect, I get a message to update, I do, and it screws everything up so much that I have to lose all the music on my iPod (which wouldn't be such a big deal hadn't the hard drive with the music on it recently crashed). The moral here has to be to NEVER UPDATE ANYTHING iPod or iTunes related.

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