Did the Reset Utility see your iPod? So, you were actually able to use the utility to reset the shuffle?
Just so we are on the same page here, if the iTunes sidebar is hidden, from the menu bar, under View, select Show Sidebar.
With the sidebar visible, when you connect the shuffle, does it appear in the sidebar, under DEVICES?
The reset utility I guess worked, it says it reset the shuffle....
It does not show in iTunes and is not visible on the Sidebar, My other devices show. My iPhone, My iPad, Etc...
I keep getting the error from iTunes every time I plug in the shuffle.
iTunes cannot recognize this iPod at this time.
You must restore this iPod with iPod Reset Utility before it can be used with iTunes. For help, click More Information.