OK guys, after one week without sleeping, searching every corner of the web and every corner of dedicate forum (this site,iPodLounge,etc...), I have to give up. These are my final conclusions (I am an electronic engineering student here in Italy, I love music, I talked to a lot of collegues and friends, I asked for others opinions: I can't say I'm an expert, but I know where I'm putting my hands)
1) I tried the iPod Shuffle in Windows XP, MAC OS X & Linux. The computer can recognize that an iPod Shuffle is attached, but it's impossible to read what's inside (I/O error). That means it's impossible to see the CAPACITY of the disk, it's impossible to FORMAT it (failure of commands like fdisk, chkdisk, format, mount, etc...) or to use disk utilities programs like HP Format Tool, Disk Utility in the Mac, Windows USB, etc... With Linux we have the information that the operating system can't read the iPod Shuffle first memory block. And in Windows in fact we have the message "insert a disk"
2) For this reason it's impossible to fully restore the iPod with Apple utilities, just because we can't write on the flash memory of the iPod. This explains the 1418 error in iTunes 7 and the errors on the previous versions of iPod Updater. As I said before, iTunes recognize that the iPod is attached because it recognizes the hardware (as we can see in the Control Panel), but it doesn't recognize its flash memory and says it's corrupted (as we "cannot see" in the Disk Manager)
3) The iPod Shuffle has the same behaviour of a traditional USB pen drive with a damaged flash memory
4) I can assume that iTunes 7 has stressed the iPod Shuffle "burning some sectors" of the memory, it's just not a coincidence. Other reasons may be plugging out the device without clicking on "Remove securely hardware" on Windows taskbar, after the installation of iTunes 7. Anyway we must remember that iTunes7 incorporated the old iPod Updater, a new "iPod data usage" system, and a new volume limiter... Find your own conclusion..
5) For newbies, remember that the iPod Firmware is ON the flash memory (that's why in 1GB models you saw only 990 MB free). If we can't restore the firmware, it means we can't restore the flash memory.
So, if your warranty has expired, I suggest 2 conclusions:
1) Open your iPod and try to replace the flash memory with a new one.
2) Take your iPod with you, go to the nearest Apple Center, and stick it in the right place you can find there.... 🙂
Good luck to all of you and thanks for your attention!
PS: 2 years ago I bought an iPod shuffle in Singapore, only to found in Italy that the button was spoiled. The replacement served me till last week, when I had the idea to install iTunes 7.
But 4 years ago I bought a 20 GB Creative Nomad Jukebox 3. He's still here doing his job, and smiling to me when I need him. I used him even to djing in smoky and wet parties... and Creative is a Singapore brand...
Windows XP