IPod Classic Hard Drive

I have an iPod Classic 160 GB (6th Generation). Recently I started having problems with it during syncing. itunes slows down and then the iPod becomes like a car trying to start, like it stuck and When I put my hand on the back, I can feel the hard drive. Usually if I sync around 300 songs, everything goes well but if I sync more than the that, it takes more time due to the fact the itunes slows down and when itunes finishes sync, the iPod says no music but the space is used up and the data somehow ends up in the "other" folder.

I tried using different computers, different music files, formatting the hard drive but nothing seems to be working. I also took a hard drive diagnostic test and the reallocs number came high but the Pending sectors were 0. My iPod is out of warranty and I don't have an Apple store where I live. I have a friend going to San Francisco in May but the problem is that Apple has a policy considering devices out of warranty. They say they have the right to refuse to repair any device if the warranty is expired. Should I send the iPod with him or I don't even have to bother cause Apple isn't going to do anything? Does anybody have any other idea that I could use. Thanks and sorry for my long message.