The USB is recognized

Try a force connect (press center button and play button) as you plug in your ipod. that should at least allow you to restore it. if it doesn't even show up as a drive in windows explorer there is most likely a hardware defect and it may be necessary to replace the locig board. there is a free ipod repair guide on how to to that.

I had the same problem and found that the problem was the USB port I was attempting to use. I had a 1.5 on the front of the CPU, but needed a 2.0 for the iPod. Once I had that 2.0 installed, no problem. Best Buy can do that (cha-ching) or another choice is to get a "spider" type extension which will allow you to plug in multiple devices using one USB port. Hope this helps!

If you're having trouble with your iPod, try these steps (known around here as the five Rs) one at a time until the issue is resolved. These steps will often whip your iPod back into shape.

1. Retry your iPod with a different USB or FireWire port on your computer (please note that the latest iPods can only be synced through USB).
2. Reset your iPod. To reset an iPod, iPod nano, or iPod mini, press and hold the Menu and Select buttons until the Apple logo appears, about 6 to 10 seconds. You may need to repeat this step. To reset an iPod shuffle, disconnect iPod shuffle from the computer (if connected), and then move the switch on the back of iPod shuffle to the off position. Wait 5 seconds, and then move the switch on the back to the play in order or the shuffle position.
3. Restart your computer, and make sure that you have the latest software updates installed.
4. Reinstall your iTunes software and make sure you have downloaded the latest version. Check your iPod software by connecting your iPod to your computer, and then in iTunes, select your iPod in the Source pane. Click the Summary tab, and the Version section tells you whether iPod is up to date or needs a newer version of the software. Click Update to install the latest version of the software.
5. Restore your iPod by connecting your iPod to your computer, and then in iTunes, select your iPod in the Source pane. Click the Summary tab, and click Restore to restore iPod to its original settings. Follow the onscreen instructions to complete the restore process. (Important: Please note that restoring an iPod will erase all songs and files on your iPod and restore it back to its original settings. Make a backup of any files on your iPod before restoring it. After restoring, you can transfer your music and files from your computer back to your iPod again.)

Note: Because Restore erases all of the songs and files on iPod, make sure to back up any files you've saved on the iPod disk. All of your songs, videos, podcasts, audiobooks, and games can be loaded back to your iPod provided that you have them stored in your iTunes Library.

How to restore your iPod:
For Windows:

1. Make sure you've reinstalled the latest version of iTunes.

2. Open iTunes, and then connect your iPod to your computer.

3. After a few moments, it will appear in the source list in iTunes. If the iPod's display doesn't show "Connected" or "Do not disconnect" you may need to put the iPod into disk mode to proceed.

4. Select your iPod in the source list and you will see information about it appear in the Summary tab of the main iTunes windows.
5. Click the Restore button. You will be prompted with one or more restore options that may prompt iTunes to automatically download of the latest iPod Software.

The 4 possible restore options are:

Restore Option 1: Restore - Restores with same iPod Software version already on iPod.

Restore Option 2: Use Same Version - Restores with same iPod Software version already on iPod even though a newer version is available.

Restore Option 3: Use Newest Version - Restores with the latest iPod Software on your computer.

Restore Option 4: Restore and Update - Restores with the latest iPod Software on your computer.

6. 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 instruct you to leave iPod connected to your computer to complete restore.

7. 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.

8. 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.

For Mac:

1. Make sure you've reinstalled the latest version of iTunes.

2. Open iTunes, and then connect your iPod to your computer.

3. After a few moments, it will appear in the source list in iTunes. If the iPod's display doesn't show "Connected" or "Do not disconnect" you may need to put the iPod into disk mode to proceed.

4. Select your iPod in the source list and you will see information about it appear in the Summary tab of the main iTunes windows.

5. Click the Restore button. You will be prompted with one or more restore options that may prompt iTunes to automatically download of the latest iPod Software. The 4 possible restore options are:

Restore Option 1: Restore - Restores with same iPod Software version already on iPod.

Restore Option 2: Use Same Version - Restores with same iPod Software version already on iPod, even though a newer version is available.

Restore Option 3: Use Newest Version - Restores with latest iPod Software version on your computer.

Restore Option 4: Restore and Update - Restores with latest iPod Software version on your computer.

6. A message will appear prompting you to enter an administrator's name and password.

7. 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 instruct you to leave iPod connected to your computer to complete restore.

8. 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.

9. 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.

Or

Try to reinstall

To update and reinstall your iPod software, first download the latest version of iTunes.

http://www.apple.com/itunes/download/

Next, open the new version of iTunes and connect your iPod to your computer.

Select your iPod in the source list and click "Check for Update" under the Summary tab. iTunes will check to see if your iPod needs to be updated and perform the update for you.

http://support.apple.com/kb/TS1382?viewlocale=en_US
http://support.apple.com/kb/HT1320?viewlocale=en_US


Hope this may help;

Regards,
VOTIT

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