Ok,i have resolved this problem.
Heres how:
1. Connect your iPod Warning! if iTunes loads when you plug in your iPod, and is set to automatically sync your entire library (erasing your iPod), you MUST stop it hit the little X in the upper right hand corner of the window.
2. Open your iPod It should show up on My Computer as a Mobile Device; right click and choose Explore. Alternatively, go to the Control Panel, Portable Media Devices, and double-click your iPod.
3. Unhide the files By default, Windows hides hidden files and folders (thus the name). Go to Options (in the Tools menu), and on the View tab, check Show Hidden Files and Folders.
4. Find the Music The music is stored (in current iPods) in the directory \iPod_Control\Music. This may have a lot of odd looking stuff in it it doesnt matter; select everything and drag and drop them to a folder on your hard drive.
5. Configure iTunes Go into iTunes Preferences, and under the Advanced tab, check Keep iTunes Music Folder Organized and Copy files to iTunes Music Folder when adding to the library (settings move around a bit between versions of iTunes, but these settings will be there somewhere).
6. Add Your Files In iTunes, select File, Add Folder to Library, and select the folder where you copied the files from your iPod. Alternatively, just drag and drop this folder onto iTunes
Once youve done that, iTunes should sort out the files from the iPod folder structure, put the artist and album information back from the ID3 tags in the music files, and reorganize the whole thing in the iTunes library folder.