General update/summary:
1) sysinfo corruption error occurs when iPods with 3.0.2 firmware connect to iTunes. Global settings are often also lost from the iPod. It is not a physical fault with the iPod or iTunes. It is a software/firmware issue. The problem seems to be affecting all iPods regardless of iTunes version or operating system.
The problem also appears to be related to a Play Counts corruption that people are getting.
2) chkdsk /f can be run from the command prompt on the iPod drive to dismiss the error message. It detects cross-linking in the file and fixes it by making an appropriate copy. However this is a more complicated solution than:
3) Other temporary solutions include soft resetting iPod (Menu+Select until Apple logo appears). Restoring also works, but takes a lot longer and accomplishes nothing if restoring back to the same 3.0.2 firmware because:
4) If a temporary solution is implemented, the problem will reoccur when iPod enters deep sleep (after 36 hrs). So:
5) The permanent solution is to restore to 3.0.1 firmware using an older version of iPod Updater. If you don't already have one, try the last available one at
http://www.apple.com/support/downloads/ipodupdater20041020_readme.html
6) I have reported the problem in all its detail and Apple Engineering US are investigating this matter.
7) Search the whole of Apple Discussion for 'sysinfo' and/or 'chkdsk' for further detailed information from me and everyone else who is experiencing this problem.
Will keep everyone posted with new info when I have it.
Kind regards,
Da Gopha.