ipod 3g and ipod software vers 2.3 - new software has ruined my ipod

I've just revived an ipod i havent used for over a year. I've done a little research but not enough to find an answer. Every time I connect my ipod 3g to my macbook since I updated the software to 2.3, the ipod is not recognized by itunes and is permanently in disk mode. Something is now wrong and the ipod will not recognize my button touches so i cannot force reset it. Plugging it into the old firewire wall plug doesn't work either. It just says "okay to disconnect" permanently and is permanently in disk mode. The new software update has jinxed it i think. Are there any fixes or ways to force mac os to recognize the disk so i can re-format it?

http://forums.ilounge.com/archive/index.php/t-39294.html