When iPods say they are playing and they aren't

I am currently trying to get an iPod 1st Gen 1GB Nano back up and running for a friend at work. The iPod shows music is on it, iTunes sees there is music on it but it will not play anything.
When you select a track (any track) it will go to the screen to show it is playing. The play arrow appears but the track counter never advances past 0:00. It doesn't skip to the next track it just stays there. It doesn't totally lock up as you can advance through the menus. It just doesn't play music...or any audio for that matter.
Now I play tracks from the iPod on iTunes (even tracks that aren't on the computer) and they work just fine. I have completed the 5R's multiple times and nothing is fixing the issue.
I can also see by looking at the discussion boards here that this issue is not a new problem nor is it related to just the Nano. I have seen multiple topics dating as far back as late 2005 up until last week on lots of models of iPods.
The unique part of all the topics is that you never once see a working answer to fix the problem. I can't help but wonder what ever happened to the people that posted the topics. Did they just go out and buy a new unit? Did they just take it back to the store? The only thing I see is that the 5R's aren't working for lots of people and there is nothing listed to help this problem.
Anyone have any ideas? I've done the 5R's, I've done every diagnostic suggestion listed on the Apple answer documents and still can't get this thing to play a single track.
Also just to put this out there. This isn't exclusive to Windows formatting as I have tried to reset it in Mac format only to continue to have the same issue.
20in iMac 2GHz Core Duo / 6GB iPod mini (Silver)   Mac OS X (10.4.9)   Dell Insperon 8200

Kind: MPEG audio file
Format: MPEG-2, Layer 3
Size: 1.5 MB
Channels: Mono
BIt Rate: 32 kbps
ID3 Tag: v2.2
Sample Rate: 22.050 kHz
This is a podcast downloaded via iTunes. I have placed purchased songs, podcasts, and all sort of music ripped from my CD's etc and all fail to play.
I'll be giving the Scandisk a shot here shortly and will repost the results.
Thanks for the reply I hope you'll be able to help!

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