Hi brother bean,
Try this:
1 - Force your iPod into disk mode, following the steps in
this article.
2 - Connect your iPod to your computer.
3 - Open "My Computer".
4 - Right-click on your iPod, and click on "Format".
5 - Select the "Format Type" to be FAT32, and make sure that Quick Scan is not selected. Then, click on "OK" (I belive that's what the button says) to begin the formatting process.
6 - After the format is complete (it might take a while), restore your iPod in iTunes.
-Kylene