i thought that i woas never going to update my ipod but i jsut did what cooleo561 said
Put the iPod into Disk Mode (see
http://support.apple.com/kb/HT1363)
Connect it to the PC. If iTunes starts, it should work
Using the Windows "safely remove hardware", stop the iPod device.
Reset the iPod (hold the centre & menu button till the Apple appears).
Reconnect the iPod and start iTunes (if it doesn't start itself).
It will now recognize the iPod. You may have the re-load the library and settings, but at least it now works!
AND IT WORKS . i dont no if i will have to do this everytime but i dont care if it means my ipod can be updated.