Stuck in recovery ... can't erase ... now what?

Okay, I've tried it all! Now what? Is it worth taking to a Mac fixer or should I pitch it and buy new. My son has had his Nano 2nd generation for 3 years with no problems. BTW: I've updated to 7.7, I've set the ipod to disk mode, I've left it charging for at least 30 minutes. I opened disk utility and clicked delete (and it won't! disk utility just quits). I get one of three messages in iTunes when I connect and reconnect: iTunes has detected an ipod that may be corrupt. You should restore" (but I can't because then iTunes promptly quits) OR "You have plugged in a device that Mac OS cannot read." OR iTunes detects an iPod in recovery mode."
So break it to me. Would it be worth getting fixed or do I tell my son, well, you got 3 good years out of it ... at $230! Arghhhh!

Did you try forcing the iPod into disk mode first?
Ensure the HOLD switch is OFF so that there is NO orange color showing beneath the switch. Then, press and hold the MENU and the SELECT (center) buttons together for about 10 seconds, until you see an Apple logo. When you see the Apple, IMMEDIATELY press and hold the SELECT (center) and the PLAY/PAUSE buttons together until you see a check mark, and the iPod says "Disk Mode, OK to Disconnect."
If not, try that and then see if you can either restore through iTunes (I'd try that first) or reformat through Disk Utility. If you can reformat it with Disk Utility, try to restore in iTunes after that.
If it is absolutely dead, you might want to consider replacement options. Sounds like the nano is probably a 4 GB.
Apple can replace it out of warranty for $99 USD
(from: http://www.apple.com/support/ipod/service/prices/#us )
and the replacement will carry 90 days of hardware coverage.
You can also purchase a refurbished 4GB new nano for $99, which gives you your full year warranty. (I recommend refurbished products from Apple without hesitation... several iPods and this MacBook, no problems).
http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore.woa/wa/RSLID?sf=wHF2 F2PHCCCX72KDY&nclm=Certified
I believe you can also trade it in at an Apple retail store for 10% off of a new iPod.
CG

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