I did everything in and it it still is not beind reconized, It works as the external drive, but I just cant get Itunes to recognise it, this is sooooo frustrating. Any help would be neccassary, oh yeh, and im running Winblows XP
I had similar problem. while updating iTunes, shuffle juz went freez and iTunes could not recognize shuffle anymore. even tired using ipod updater but then it also not able to detect the ipod. I searched everywhere in the web for the solution but could not find any.
couple of places I read that Apple repalced the ipod itself for similar problems. But I wanted to try all the possible solution by myself and
finally I used windows xp disk managemnet where it shows ipod as removable disk
you can right click and format using some file system ( i formatted using FAT filesystem)
then used ipod updater software to restore it.