iPod stuck at "do not disconnect" and can't reformat

I have an iPod 120 GB classic. I've had it since 2008, so understandably it's bound to not run as well as it used too (which can be seen through the rather weird battery life), although it runs mostly fine... until today.

I were driving to my dorm, listening to my iPod as I usually do, everything running and sounding as it's supposed to do. I plug it into my laptop, however it fails to actually do anything with it. iTunes froze and so did pathfinder if I tried to right click on the thing. This isn't the first time I've had this problem however (actually it's the 4th, on my count), and it is usually remidied by me plugging the iPod into my desktop, reformat it through iTunes and I can use it again. This time however, it's far different. It wouldn't pop up on iTunes, but it would pop up on pathfinder, and after waiting a while, the computer allowed me to reformat it, which I did. iTunes started recgonizing it, but it said that some files were missing, eventually recgonizing it as corrupt and resulted in me reformatting it through iTunes.

After this however, the iPod is now stuck on the "do not disconnect" screen. When I restart it, the iPod tells me to use iTunes to restore it, yet "do not disconnect." I've tried plugging it into the laptop, "do not disconnect." I tried charging it through the power outlet and it sends me to the same screen, yet says it's okay to disconnect. The furtherst I got, was having hte iPod say that it needs more power (through the usual screen when an iPod is lacking any power), but this new found hope of a screen was scant, as it went back to "do not disconnect." I have tried putting the iPod into disc mode, but to no prevail.

At the time of writing, iTunes doesn't freeze when the iPod is inserted, which I assume means it can't detect it. The iPod eventually pops up under my computer as a removable disc, but clicking on it (either left or right) ends up freezing pathfinder, forcing me to restart it.

At this point, I am considering going on eBay and trying to look for a 160 GB model, but I want to give an earnest try to fix my 120 (especially since I need it next week).

Is there, anyone here on these forums, who can help me?