BAD Software or harddrive
This can be a number of different problems. If the software in your ipod goes bad, you can sometimes fix it with other ipod repair software. More than likely though, you will need to send it in to a company that deals with broken ipods or damaged ipods. There are several of these companies that will do ipod repair on your broken ipod for a reasonable price. All you do is send them your damaged ipod and they will restore it and send it back good as new or. Below are some of these companies.
Broken Ipod = Ipod Repair Service
The HAll of Shame
Destroyed Ipod-Toast
Damaged Ipod-Cracked Screen
Damaged Ipod-Screen Error
Ipod Sad Mac-Harddrive