I had the same problem and struggled with it for about 2 hours and came across an 800#. A Representative walked me through it so the blinking amber light stopped and can now listen to the songs that have downloaded to it. We had to wait on hold for about 10 minutes to get a "live" person, but it beats 2 to 3 hours. The number is 800-275-2273. In the interim, while you are waiting for a Representative, while in iTunes, click on "Controls" in the upper left corner and try to eject. It did not work for me. Eventually, I had to try to shut down the computer, which also took too long, so eventually just turned off the computer, (all along during this process I kept the iPod in the computer). Waited a few seconds and turned it back on and logged on. Went to start, "All Programs", ipod, ipod updator, restore, once restored, then closed out of box. It had steady amber light and I manually ejected it from the computer. If all else fails hopefully the "live" person can walk you through it.