Attempting to copy the disk "IPOD" failed. Disk could not be read from or written to?

So.....

I own a 5th genereation Ipod Nano. On a windows PC.

On my iTunes all my music and playlists exist. On my actual Ipod it only shows 3/4 of my music (for some reason it wont sync the rest). It also shows zero playlists on my Ipod. I now cant sync new music onto the device, despite it showing up on my library. Also I've noticed that for some reason the artwork is messed up e.g. the artwork for Aerosmith is now showing up when a Thin Lizzy song plays :S

I have tried restoring to to factory setting but got the same error message!

Please please please can somebody help me fix it!!!!!!!!!!!!!!!