Download all the files you'll need.
Head over to http://www.killdisk.com and download the free version.
If you think your have defective firmware becase you tried to mod it somehow then head over to http://www.apple.com/ipod/download/ and download the latest firmware update(unless you already have it)
Install the firmware files(to your computer). When you need to access them later on they will be in the ipod folder in your programs folder.
Plug in your ipod.
Now go to where you put the killdisk files. Open the KD_WIN file. It opens up a dos window and shows all the connected hard drives including the now defunct ipod. Use the arrow keys to go down to your ipod. It's probably labeled iPodME, but I dont know if thats always the case. MAKE SURE THE CURSOR IS ON THE IPOD!
You dont want to accidently erase the wrong drive.Then press F10 and it begins deleting all the info on your ipod. It's gonna take a while. I'd imagine it'll take a lot longer with any other larger in filesize type ipod other than a Nano. My Nano took about 40 minutes to completely erase.
Once thats done unplug your ipod. Its going to boot up and bring you to a screen asking you go to an apple web page for support. Press ctrl+alt+del and make sure ipodservice and for that matter itunes is not running in the background so view the processes and turn them off if they are.
NOW open the latest ipod updater and when it asks you to connect your ipod do so. It finely was able to mount my nano and all the firmware was restored. Of course all the music was gone from the nano but thats no big deal and it was expected.