Hey there agsteph,
Thanks for asking the Apple Support Communities about issues with your iPod nano. Thanks for also letting us know the issue is not with the cable.
At this point, we need to rule out the computer as the problem. The fact it says it has a drive error, might be right, but only by connecting it to another computer would that be definitive. If it does not have the same issue on another computer, we know the issue is with your PC, or version of iTunes.
You can also try seeing if it can be read in disk mode: How to put your iPod into disk mode - Apple Support
If it is being read in disk mode, it's likely not a disk issue. Since you have a PC, try these steps: You need to uninstall not only iTunes, but also (in this order):
1) iTunes
2) Apple Software Update
3) Apple Mobile Device Support
4) Bonjour
5) Apple Application Support
Then you restart your computer.
Then you install the latest version of iTunes (which will reinstall all those things you uninstalled).
Then you restart your computer again.
This article has great steps: If you can't install or update iTunes for Windows - Apple Support
If everything above has not helped, sometimes issues with the drive might be resolved with a reformat. This will erase all the info on it, but should allow you to restore your music back on and get it working again, that is as long as it's something with the format, and not a physical hardware issue: Restore your iPhone, iPad, or iPod to factory settings - Apple Support
If the drive is the issue, your only option will be to have it checked by a certified technician at an Apple Authorized Service Provider or Apple Store.
Take care.
