Hi Folks,
Had some success with this problem lately ... two things:
I disabled letting my computer power down the ipod, as suggested here:
http://docs.info.apple.com/article.html?artnum=301343
More importantly, I believe my problem was/is because the ipod insists on being my drive E:, which, since my computer is on a network, conflicts with a drive already assigned when I log on to my computer and the network.
When I removed the mapping to drive E (on my network), and rebooted, the ipod found itself as drive E, and things worked smoothly.
I still have to manually map and disconnect this network drive, if I want the ipod to work on this PC, and still use the network. Bit of a drag, but seems to work.
(I may later change my network mapping of drive E to a drive further in the alphabet (e.g., "L"), which I think will make the ipod and my network good friends ... but I have too many programs relying on the network E drive being mapped as is to just jump in and make this change right now.)
My theory is that the ipod looks for the first unallocated drive after the last allocated drive on a PC, meaning, I think, any drive that is not committed via a floppy, internal hard disk, CD, and/or DVD drive.
In my case, I've got an A floppy, a C hard drive, and a D DVD/CD drive, so the ipod took E, even though E was already mapped to a network drive.
So, even though the above article maybe isn't relevant (though I think it is), the drive mapping fiasco solved my problem.
Good luck!
-Bruce