Sorry to hear about your experience at the store. You can leave feedback here:
To address the issue with the iPod, if you haven't already done them, I'd like to supply you with the recommended troubleshooting steps for when you see that red "X" icon on your iPod:
Restore iPod from Disk Mode
- Disconnect iPod from your computer.
- Manually put iPod into Disk Mode.
- Open the latest version of iTunes and connect iPod.
- Restore iPod.
Setup Service for iPod
If you cannot force your iPod into disk mode and restore it, then your iPod may need service. Click one of the links below to setup an iPod Service Request online or make a reservation at the Genius Bar before visiting your local Apple Retail Store.
If you already went through those steps and are seeking service, every iPod comes with a one-year limited warranty and 90 days of complimentary telephone technical support. You can read more about it here, and follow the below link to find out how to get service:
Wow, I've had my 160GB Classic since Oct 2007 and haven't seen a red X...love the thing.
I have about 400 CDs on it in Apple lossless format and there's still about 38GB left. I don't put music on my iPad because it runs into conflict with space needed for apps--which is what the iPad is all about. I have decided that my precious iPod Classic is MY MUSIC PLAYER--end of story. All my music, anywhere, anytime, and with no Internet connection needed is what I want. I certainly don't want to play music via a data-plan.
The only things I'd really like on a new version would be integrated Blue Tooth and more disk space.
Good luck with getting your iPod Classic back in order.