Applemanic, thanks for updating, so I guess it is no longer stuck on the Apple Logo screen, since you can do the DD. What do you see on the screen after the Reset? Menu or Red X or sad face?
Your iPod Hardisk still looks good, so I think it is a corrupted iPod Hardisk FileSystem which you can fix using Disk Utility.
Try using First Aid -> Repair -> Mac OSX Journeled
Then after complete, disconnect your iPod, reboot your Mac, and connect back the iPod, Restore to factory settings when iTunes prompts.
If the above doesn't work, repeat using, Disk Utility Erase, (This will take about 5 hours, better to do it before going to bed)
If Disk Utility Erase doesn't work, then borrow a Windows Machine and reformat it in FAT32.
(Some have tried NTFS, then connect it to Mac, which will trigger iTunes to Restore it to Factory settings)
Of course all the above suggestion is assuming that your sync cables and USB Ports are in good conditions.