ipod nano 4GB (error message in itunes)

I receive an error message when itunes is up and my ipod nano is connected. The error message says: The file or directory\iPod-Control\iTunes\iTunesDB is Corrupt and Unreadable. Please run the Chkdsk Utility. Also, no music can be transferred to my ipod. At times a window pops-up saying: iTunesLibrary.itl cannot be read because it was created by a newer version of iTunes. I did download the latest version and still dosn't work!

Can anyone help on the steps to solve this problem?
Thanks!