Mini stuck in Disk Mode

I'm having a problem in which my mini is stuck in disk mode after I eject it from itunes, or off the desktop. I've tried resetting it, but nothing happens all I see is disk mode with the large check symbol followed by the ok to disconnect message. I have restored it using the most current ipod updater, and it hasn't changed a thing. Last night I was unable to transfer any music to it, I'd get a message saying the disk couldn't be read or written to, however I was just able to transfer a couple of songs after changing the connection cord to USB. I tried connecting it to the outlet with the adaptor, and the battery shows as fully charged.

On occasion it'll show a folder with an exclamation and the web address to this forum. I forgot to mention I ran it through disk utility and both verifying disk and repairing disk showed the iPod was ok. Has anyone experienced anything similar? and if so, help?

I looked to find a topic covering this, but most everyone's issue was resolved with a reset.