Toggle the Hold switch on and off. (Slide it to Hold, then turn it off again.)
Press and hold the Menu and Center (Select) buttons simultaneously until the Apple logo appears, about 6 to 8 seconds. You may need to repeat this step.
Tip: If you are having difficulty resetting your iPod, set it on a flat surface. Make sure the finger pressing the Select button is not touching any part of the click wheel. Also make sure that you are pressing the Menu button toward the outside of the click wheel, and not near the center.
If the above steps did not work, try connecting iPod to a power adapter and plug the power adapter into an electrical outlet, or connect iPod to your computer. Make sure the computer is turned on and isn't set to go to sleep.
If you are still unable to reset your iPod, use only one finger from one hand to press the Center (Select) button, and one finger from the other hand to press the Menu button.
When you reset iPod all your music and files are saved, but some customized settings may be lost. Date and time are preserved (unless the iPod reset itself because it had no power and then was reconnected to power). Other customized settings, such as Bookmarks, On-The-Go Playlists, Shuffle, Backlight timer, and so forth are preserved from the last time the hard drive turned on.
Putting ipod into disc modehttp://support.apple.com/kb/HT1363
Toggle the Hold switch on and off.
(Set it to Hold, then turn it off again.)
Press and hold the Menu and Select buttons for at least 6 seconds until the Apple logo appears.
When the Apple logo appears, release the Menu and Select buttons and immediately press and hold the Select and the Play/Pause buttons until the Disk Mode screen appears.
Connect the iPod to your computer; the screen on the iPod will change and say "Do not disconnect"
If you are having difficulty putting the iPod model into disk mode, set it on a flat surface. Make sure that the finger pressing the Select button is not touching the Click Wheel. Also make sure that you are pressing the Play/Pause button toward the outside of the Click Wheel and not near the center.
If you are still unable to put your iPod with a Click Wheel into Disk Mode, use one finger from one hand to press the Select button, and one finger from the other hand to press the Play/Pause button.
How to restore iPod
(ARTICLE NUMBER HT1339)
Open iTunes, and then connect your iPod to your computer using the USB or FireWire cable that came with your iPod.
After a few moments, your iPod will appear in the Source panel in iTunes.
Select your iPod in the Source panel and you will see information about your iPod appear in the Summary tab of the main iTunes windows.
Click the Restore button. You will be prompted with one or more restore options that may prompt iTunes to automatically download the latest iPod Software.
The 4 possible restore options are:
1: Restore - Restores with same iPod Software version already on iPod.
2: Use Same Version - Restores with same iPod Software version already on iPod even though a newer version is available.
3: Use Newest Version - Restores with the latest iPod Software available.
4: Restore and Update - Restores with the latest iPod Software available.
If you are using a Mac, a message will appear prompting you to enter an administrator’s name and password.
A progress bar will appear on the computer screen indicating that the first stage of the restore process has started.
When this stage is completed,
iTunes will present one of two messages on screen with instructions specific to the iPod model you are restoring.
Restore Instruction 1: Disconnect iPod and connect it to iPod Power Adapter (typically applies to older iPod models).
Restore Instruction 2: Leave iPod connected to computer to complete restore (typically applies newer iPod models).
During the stage 2 of the restore process, the iPod will show an Apple logo as well as a progress bar at the bottom of the display.
It is critical that the iPod remains connected to the computer or iPod Power adapter during this stage.
Note: The progress bar may be difficult to see since the backlight on the iPod display may be off.
After stage 2 of the restore process is complete and the iPod is connected to the computer, the iTunes Setup Assistant window will appear asking you to
name your iPod and choose your syncing preferences similar to when you connected your iPod for the first time.