Yet Another Faulty iPod Classic - Connects to "computer" but not iTunes

In Oct 2009, I purchased 160GB Classic and is now out of warranty so unable to replace, and i am not too keen on buying another one (NZD $470 RRP).
It had been working as per normal until Dec 2010 when I tried to sync the iPod on newly updated iTunes (10.1) then it started to freeze during sync and now, it doesn't sync any longer. It is howing as "connected" on the iPod and in "My Computer", but doesn't show up in iTunes at all.
iTunes also freezes (doesn't work whatsoever) while my iPod is plugged in to my computer. I have tried everything that the "Apple" help sites suggest (the 5 "R's", formatting, disk mode etc) you name it, but to no avail.
Trying to fix this problem is becoming frustrating and time consuming. My wifes iPhone 4 works perfectly so I know it's not the computer or iTunes itself. As I (had) trust in Apple products, I would expect this to last for more than 15 months.
I have no idea how this all came to be, and would just like it to work as normal again. What a way for Apple to earn its' "money"...
PLEASE, if ANYONE can help here, it would be very much appreciated.

I purchased 4 x iPod Classic 160gb units between July 2008 and March 2009 (and a 120gb Classic with which we have not had a problem). One unit worked for one day and had to be returned and was replaced with a new unit. The other three all failed within the 12 month warranty period and were replaced by Apple. Of the four replacements, three have now failed about 15 months after they were replaced. Of course the units are outside warranty (in particular due to Apple only offering the greater of 3 months warranty or the remainder of the original warranty). The units haven’t been subjected to any forceful knocks and as demonstrated by the lack of physical marks on the units.
To have 7 out of 8 units fail in this timeframe is in my opinion indicative of a fundamental flaw in the build quality or design of the units. After putting my case to Apple Australia I finally received a reply confirming that the units were out of warranty and nothing could/would be done - but they did offer a "thank you gift" of a credit of up to $125 at the Apple Store if I spent at least $425.
I replied that this wasn’t satisfactory but took up the credit whilst it was offered to at least get some discount off a new 160gb Classic (more reliable I am led to believe!). I am now out of pocket over $770 with replacement three units and still have one remaining unit that could die at any time.
Apple is no longer replying to my emails. If anyone with similar experiences would like to join together to put pressure on Apple to make good, or pursue other actions via consumer affairs, please reply on this forum.

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Yet Another Faulty iPod Classic - Connects to "computer" but not iTunes

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