Are you sure that you reset the iPod as per How to reset iPod? Keeping in mind:
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 you have reset it you need to get it into Disk Mode. If it doesn't work or respond keep trying and it just might.
