Unfortunatly as I said earlier the symptoms you were describing are sings of your iPod's HDD sieing. Here is what you can do.
code:
--> Disconnect the iPod from the Computer
--> Press and Hold the Menu and Select buttons with only the slightest of pressure (too much can cancel out the keys)
--> When the Apple Logo appears (Or when the screen turns blank) Press and hold the Previous and Select buttons
--> You will see a screen saying
IRAM PASS
Press Play Cont
--> Press the Play button on your iPod
--> Using the Next Button, keep pressing it until you have Disk Mode highlighted (Note: there is 3 pages of diagnostic tests)
--> Once you have Disk Mode highlighted connect your iPod to your computer and press select
--> Your iPod should display the Do not Disconnect screen
Try and run the iPod Updater and just let it run continually until it picks up your iPod or gives you an error message.
Possible things that can happen from the iPod Updater
Can't Mount iPod: If the iPod loops back to the Apple Logo you will get this message which isn't a good sign. Disk Mode enables the HDD just as that and nothing else so if it resets then its a bad sign. Follow the steps above in the code to get to diagnostics and run the HDD Scan with the iPod connected to the Adapter. (Keep an eye on how long it takes to finish and the results it gives you)
Plug in an iPod to Update: Also not a good sign, it means that the software actually doesn't recognize the iPod so again run the HDD Scan through diagnostics as stated above.
Good Luck and post back with the results.