iPod Windows or OS X Not Recognizing 2 gen iPod Shuffle

I have one of the first, 2nd Gen iPod shuffles. When I go to update it, I plug it in, and the green light shines for a second, and then an orange light blinks for another second. I tried this on two different computers. On a windows PC, Windows said that it was malfunctioning. However, I can still play music, and charge it with the Apple USB Power adapter.

What the heck is going on?

EDIT: The iPod Shuffle restore utility does not work either.