Shuffle in "recovery mode"

i am trying to fix my sister's 512 Shuffle. iTunes 7 in XP would take ~10 minutes to recognize the iPod. it would say there was a problem and needed to be restored. these are the steps i took:
1. tried the restore in iTunes 7. the status bar would just go back and forth for a half hour before i stopped it.
2. it was recognized as a windows drive, so i reformatted it as a FAT drive. tried the restore again, and the samething happen as in step 1.
3. brought it to work to try in my mac. using iPod Updater 2006-03-23, it restored. i was a very happy person.
4. now, this is where it all went horribly wrong. i plugged it into a XP machine, to see if it still could be read i windows. it was, so i tried updating the firmware using iTunes 7. i got a "unknown error occured 1411" (or something like that. i wrote it down, but i can't read my own handwriting). after that, i unplugged it and plugged it back in. XP would say it was a STMP3500 and there were no drivers for it.
5. so i went back to the mac. iPod Updater 2006-03-23 just sits there saying "Waiting for iPod to become ready." iPod Updater 2005-06-26 goes between saying "Plug in an iPod to update it" or "iPod: Recovery Mode", and then when i hit "restore", it says "Plug in an iPod..."
6. before i hit "Post Message" to send this, i tried "2006-03-23" once more. know it recognized the Shuffle (but lights are blinking), and i was able to restore it. now it says "Your iPOd has been restored...Please leave the iPod connected and wait while it completes the restore process..." it asks me if i would like to go into iTunes. i do, and it is still not recognized, nor does updater recognize it when i go into either updater.
thanks and any help/advice would be appreciated...

So Apple has a major bug in their shuffle ipod software that causes the ipod to be discovered in "recovery mode" when reattached to the Mac. It requires restoring it, and then resynching all your music. The best part is - EVERY TIME you reconnect it to the Mac it will find your ipod in recovery mode and it will need to be restored, now resynch all your music. This continues until they fix the bug in the software.
In the meantime, there is a work around until Apple fixes it.

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