Has it been saying Initializing this entire time without results? If so go ahead and run the HDD scan on it.
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 HDD Scan highlighted (Note: there is 3 pages of diagnostic tests)
--> Once you have HDD Scan highlighted connect your iPod to your AC Adapter (Power Adapter) and press select
--> You should see a screen saying
HDD Scan
Start . . . .
Post the results and the time it took for the scan to complete.