The iPod Reset utility will not run on your Windows 7 PC.
What have you tried so far in terms of troubleshooting this issue? Are you plugging the iPod into a high powered USB 2.0 port on the back of your PC? Have you tried a different USB cable?
What happens if you try to reset the device with it still connected to the PC?
Does the iPod otherwise function as expected, i.e. you can listen to music?
Have you carefully worked through each and every single suggestion in this Apple support document?