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Mar 19, 2016 6:58 PM in response to nncattanby Kenichi Watanabe,Do a Reset (restart) of iPod
Learn how to reset your iPod - Apple Support
If this results in the same error screen, try to put the iPod into Disk Mode
Putting iPod into Disk Mode - Apple Support
Then, connect it to your computer running iTunes. If iTunes picks it up, it may prompt you to do a Restore. If you're OK with erasing your iPod, do the Restore.
If the iPod does not go into Disk Mode or the Restore fails, the likely cause is a faulty hard drive.
Is there any way to salvage my Ipod?
You can "salvage" an iPod with faulty hard drive by replacing the hard drive. If the iPod is in otherwise good condition, you can consider replacing the hard drive with commonly available (and affordable) flash-based storage, in the form of compact flash card or SD card, on an adapter. This web site has relevant information for 5th gen and later "classic" iPods
I have not used these particular adapters, but have performed similar mods on my older 3rd gen iPod, 4th gen iPod, and iPod mini using compact flash and SD cards (with different adapters).