Currently Being ModeratedSep 3, 2012 8:04 PM (in response to Madmongoose)
is also known as the Fatal Red X, which mean that your iPod Hardisk is dying, cannot be booted up or dead. There is nothing much we can suggest here except read this Apple support Article or to send your iPod in to Apple Store or any 3rd Party iPod Repair vendor, for a replacing the Hardisk.
There have been some users who tap the iPod onto a rubber mouse pad, while the iPod is Resetting, it does get the iPod working again for a short while, till the Hardisk actuator, get stuck again, causing another round of frustrations. But my suggestion, get the Hardisk replaced.