yeah i have the same one. mine stopped working the first time i downloaded a muziki video. all i did was rest it (hold down juu and middle until the apple shows) and it worked. i never had that problem again.
my older sisters ipod classic the really old did that all teh time just plug it in the computer and click restore. i have an ipod touch and have never had any problems with it. that au an ipod shuffle they worck good