Restore turns 60 gig ipod into 16 gig

I received the corrupted message, resetting did nothing, and I hit restore. Now the settings show that the 60 gig ipod photo has only 16 gig total. How can I get the iPod to show its true capacity? I have the latest version of iTunes installed, and followed the directions to the letter.
Thanks in advance for any suggestion.

My thoughts exactly.
There is something going on here that has nothing to do with individual ipod units, it's a hardware addressing or software problem.
For me, this also happened after an iTunes upgrade, so that may be part of the problem.
This unit is like new, less than 4 months old from Apple, and has maybe a few hours of play time on it.
Other things I have tried: iPod resets, iTunes resets, downgrading iTunes iPod updater to previous versions (2 older versions), reinstall of iPod software from original 60GB iPod disk, new battery, the battery and hard drive disconnect trick, re-initializing with Disk Utility in both Mac and PC (fat 32) formats, TechTool repair (won't show up as either FW or USB drive), Disk Utility repair from OSX boot CD, re-partitioning as 1 and 2 partitions (no change possible), security erase with 0's (failed first 3 attempts), and ipod internal diagnostics.
All report the disk is OK, but are adamant that it is a 15.97 to 16.1GB disk (various results with various attempts). No formatting can change that.
I saw someone had success with a reset button on the drive itself. My drive does not have such a button, unless it is hidden under a label somewhere.
But I have looked at the pinout diagram for the drive, and there is a pin for "reset".
If you short the ground pin and the reset pin, might it activate a reset routine with the drive?
I've done all I can, so am hoping for some inspired, or authorized (dare I hope?) advice.
Thanks!

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