version 1.1.2 PC

Your iPod is corrupted and it would appear that restoring it does not help. That would've been my advice.

You could try a format of the iPod in Windows. A full format does a check and remap of bad sectors on the iPod hard drive, and you would need to restore the iPod as normal (using the iPod updater) afterward. This can also work when the iPod is recognized by the computer, but not by the updater.

First, put the iPod into forced disk mode.

See: How to put the iPod into disk mode.

On your PC, go "my computer" and right click on the iPod, then choose "format". Ensure the settings are at "default" and that "quick format" is not checked. Now select "format". It will take a while, but when that's finished, restore the iPod using the updater.

To exit forced disk mode, reset the iPod.

How to reset the iPod.

You can also check the iPod's hard drive for errors using Windows ScanDisk.

Put the iPod into disk mode as previously mentioned. Go to "my computer" and right click on the iPod then select "properties", then "tools". Select the option to scan the disk for any errors.

If none of that works, can you try on a different computer with iTunes? At least that might eliminate computer errors?

How do I update the version

Connect the iPod and from the summary screen in iTunes use the "check for updates" button.

However, if memory serves me correctly, 1.1.2 is the final version for 80GB classics.

how can I make sure its working with windows?

"Working" in what sense? Surely you'll know if it's not because there'll be a specific issue. Are you having problems?