Issue or symptom
iPod displays a sad iPod icon
and
* iPod is not recognized in iTunes
* iPod is not recognized in My Computer (Windows) or iPod not recognized in Finder (Mac OS X)
Products affected
* Any iPod with an LCD display
Solution
In most cases, the sad iPod icon indicates a hardware issue. If you are able to force iPod into Disk Mode, then it may not be a hardware issue, and you should try to restore your iPod with the latest software.
If you cannot force your iPod into disk mode and restore it, then your iPod is in need of service, set up an iPod Service Request or visit your local Apple Retail Store.
Source:
iPod displays a sad iPod icon
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