iPod disconnects itself during syncing

I decided to do a clean refill of my 80gb iPod classic as I had added artwork/changed metadata etc of the 10000ish songs (approx 47gb) in iTunes. I normally do a manual addition to the music in my iPod (and last did one at least 3 months ago). I deleted the contents and left it copying everything from my iTunes music library on to it. Unfortunately I was later on using my laptop (doing something else), when after iTunes had copied approx 4/5ths of the library (about 8000 tracks) I managed to eject the iPod using the little eject symbol that pops up next to the iPod in a folder sidebar. When I reattached the iPod, it said that it was corrupted and needed to be restored. Did that. Started the copying process again, all fine until 2692 songs later, it hangs for a while and then gives me various messages (at the same time) telling me I haven't ejected the iPod properly, that it couldn't copy because it couldn't find the iPod etc.

After it does this and I have reset it, it does not contain any music if you turn it on and is corrupted when attached to iTunes and wants to be restored again. Every time it hangs and self-ejects at a similar point which is after 11.8gb of music has been copied. I have restored it repeatedly, run disk utilities across it and run its self-diagnostics. Self-diagnostics come out fine and disk utilities (following a restore) says that the disk is fine. Before a restore but after a failed syncing, it says that it needs repairing and then fails to repair. Trying to erase the iPod partition works using disk utilities, but trying to zero-ize at the same time causes it to hang (in or out of disk mode) and then eventually unmount itself.

Diagnostic mode gives me:
Retracts: 32
Reallocs: 194
Pending Sectors: 22

From all of the above, I figure I have a hard drive failing, albeit in one particular area. I was wondering if anyone knew if there was a way of persuading iTunes to ignore that part and try writing to another part. I saw one effort which involved moving the partitions and firmware around using Terminal which I'm not too keen on (knowledge of Terminal limited to changing the odd true/false variable). Also has anyone tried erasing the whole iPod using disk utilities, not just the iPod partition? I haven't tried this yet because I have been unable to find out if this will permanently screw it.

Otherwise do I try and replace the HD or really bite the bullet and buy a new iPod (least favourite option)?

Any help is truly appreciated.