Nano will not sync audio books and itunes problem

I have an older ipod nano - the little square one.... I tried to download an audio book to it this morning using "Overdrive" but that didn't work. I then tried downloading the book to my iTunes - but it doesn't show up there. When I look in my Nano in the ITunes website there are no books in there at all and the symbol for audio books is not showing on my ipod anymore. All my music and podcasts are gone from my Nano.

I tried restoring my Nano through ITunes but nothing happens - the screen on my Windows 7 PC just stays the same..... no download progress showing and I left I for ages and ages.

What do I do now?

Thank you

Angela