Hi, long time browser, but finally decided to register!

My problem is as follows:

My girlfriend’s iPod 3G just stopped working about 1 week ago. I have had a look at it for her and it seems that it’s doing some very strange things.

Firstly I can get the computer (XP + Fire wire) to recognize the iPod (it makes a sound upon connection, how ever the iPod is not visible from "My Computer"). The first thing I attempted was the "Restore" function from the "iPod Updater" application, how-ever, it fails to initialize, and it claims "Failed to Mount iPod".

I read on other forums about people with similar problems, which stated the iPod needed to reset, then put into disk mode, which I can get to without any trouble, but I still cant get the updater software to mount the iPod. The iPod just states "Disk Mode" with a large tick saying "OK to Disconnect". I’ve also tried resetting it whilst plugging it into a mains outlet, still with no luck.

I was wondering if anyone has any advice for me on this, the warrantee has expired, so getting it changed is out of the question.