I have an IPod Classic from 2007 that has this same problem, and I am hoping it can be fixed.
My last computer was Windows Vista, and I moved to Windows 8. The previous computer had a motherboard fail and I moved to a new computer.
I managed to move all of my library over the old iPod into a new iTunes on my new computer, and then the trouble began.
The iPod says it has 0KB free yet there is nothing on it whatsoever. When it's plugged into the computer, it just freezes up my windows (can't access it through the 'My Computer') and it freezes iTunes, or iTunes absolutely won't open at all. Then when it's unplugged, the computer goes back to normal.
I did the instructions on the opening thread, and here's what I got out of my results.
Retracts: 31
Reallocs: 0
Pending Sectors: 2
PowerOn Hours: 192
Start/Stops: 294
Temp: Current 32c
Temp: Min 20c
Temp: Max 46c
After this, I went into iTunes and checked the box to not sychronize with an iPod plugged up, then plugged it in and as it did before, iTunes froze up, however when I unplugged the iPod this time, it seemed to have read it and said the unit was corrupted and needed to be restored, however I can't restore it at all since iTunes freezes up.
I pray this thing has not been broken and is possible to fix. It's a Classic 80 gig and I know they aren't made brand new today.