Error 1439, HD Dead? 3 days out of warranty!

I own a 160 GB iPod classic. Just yesterday, 3 days out of the 1 year warranty, I decided to put more songs on it. I got it out, plugged it in to the computer, and the iPod immediately went into Disk Mode. iTunes said the thing has been corrupted and needed to be restored. I was fine with erasing all the data on it, so I went ahead and proceeded with the restore process. During the restore process, I got error 1439. I looked online at all the fixes and tried all of them. However, when I disconnect/eject the iPod, it resets itself and takes me back to the language select screen. I select English and happen to notice that I have 0 KB left. I only had 1200 songs and that’s it on it, how could 160 GB be taken up? I also tried to restore it at this point and also tried with Windows Explorer (right click, etc.) but didn’t do this because thought iPods run on FAT32 file system, not exFAT or NTFS.

I am going to post the hard drive SMART test results here:

Retracts: 1

Reallocs: 3056

Pending Sectors: 0

Power on Hours: 27 (I barely use the thing, but I keep it charged)

Start/Stops: 2773

Temp. Current: 32C

Temp. Min: 3C

Temp. Max: 53C

What should I do next? Is it fried? I barely used it.

I am ticked with Apple phone support; I don’t want to pay for a question on their defective product. I am 2 hours away from the nearest Apple store, so that is probably not an option, but if I have to I will go to one. I am mad that the device is 3 days out of warranty and it decides to take a spill; it’s like Apple designed it to do that. Now it is a $280 paperweight.

One more thing, sometimes when it reboots when disconnected, it says to connect to power. It was in the computer for 4 hours, how could it drain that fast?!?

Please help and thanks in advance.