Trying to Restore and "Waiting for iPod..."......forever!!!

My iPod displays either the folder and exclamation or the sad iPod, iTunes doesn't recognize it, Windows sometimes sees it as a drive and sometimes shows "Apple iPod", so... I've removed iTunes 7 and reinstalled iTunes 6.0.5, iPod Updater 2006.06.28, and reset-up my library. Still haven't been able to restore.
I've tried the following:
- to restore in disk mode and out
- used MSCONFIG to shut down other processes and uplugged my printer and tried to restore
- tried restoring with original set-up disk (after removing other iPod Updaters.
- tried to restore on another computer
- cursed at both the iPod and the computer
Most frustrating has been the very looonnnngggg wait time after each step in the setup process. I thought that scaling back other processes using MSCONFIG and unplugging my printer would help this, but hasn't worked. Why is this happening, i.e. why does each step take so long (I'm talking 2-3 HOURS).
I don't know anyone with a Mac, so it will be very difficult to restore that way. I can put it into Disk Mode, so it's not a hardware issue -- right?
I'm out of ideas for getting this thing up and running. Is there some trick I'm missing?
Thanks for any ideas you can send!!
eMachine   Windows XP   40GB B/W Clickwheel

Took it to the Apple Store tonight and was told that my harddrive was toast. So, I turned it in and bought the 30GB video model -- and this time also the Apple Care package! If I had purchased that with the first one, I wouldn't have had to spend the money that I did tonight! I am still just within the two years that the Apple Care package would have covered -- what a bummer.
eMachine   Windows XP   40GB B/W Clickwheel

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