iPod - Possible Hard Drive Problem

My iPod is no longer syncing, it comes up with erros when I try to sync.

I suspect the hard drive is bad.

I have done a restore (it didn't work until I formatted the disk in Windows), and this has not solved the problem. I ran the diag mode and it came up with this on the hard drive test (SMART):

Retracts: 10

Reallocs: 376

Pending Sectors: 0

PowerOn Hours: 2334

Start/Stops: 22405

Temp Current: 38C

Temp: Min 1C

Temp: Max 52C

Is my hard disk gone? Could I possibly fix it?

The start/stops number is high, but I have no idea what normal looks like.