After updating to ITunes 7 with my iPod mini, I successfully downloaded some songs, but then received a Window error relating to file transfers, and not all the songs transferred. iTunes said that my iPod would not read the songs due to a format problem. I read a heap of forums, and after 6 hours of unsuccessful floundering, I found your message, and can advise:
IT WORKED!
However, it's not so straightforward. I had to find the original CD, otherwise you don't ever get to the Error 1415 or Error 1418 messages. So I reset it then ran the original CD, then ran iTunes 7, then tried to Restore. You then get the 1418 error. Then, I tried about 6 times to press RESTORE then quickly unplug the iPod as soon as I saw the progress bar trying to restore. You only have a second or so, otherwise the error will pop up. Persist! I unplugged it and plugged it back in after about half a second, using the USB cable into the docking station. I was on a four port hub, and the PC has lots of USB extension cables and hubs. Other posts suggest unplugging and changing USB ports, but I didn't bother. Eventually, the progress indicator went further than the first few percent and I was away. Then it has to update its library, so be patient. I assume Apple is no longer bothered by releasing poorly tested software and has joined the other greedy fat producers of consumer rubbish. Unfortunately, like all of us, we're locked in to Apple since we've downloaded so many iTunes! Nice marketting ploy to keep us dedicated. Anyway, I've just finished updating my new Logitech MX Revolution, which has had a bug from new, and was fixed with the latest release of their Setpoint software. Seems this is the way of the modern world.