I have had the same freezing problem...both gen1 10GB iPods.
Both started having issues after I downloaded a new version of iTunes (4.2?). My whole system would freeze when downloading new songs to the iPod.
I toasted one of the hard drives from pulling out the cord, didn't think of resetting it.
I then re-installed iTunes and things were going good for the other iPod.
Then I installed iLife, which loaded a new version of iTunes. Now the second iPod is all screwed up. I can download a few songs, but then it hangs up the system.
I verified the iPod disk, even ran the self diagnostic mode on the iPod itself.
Seems to me to be a software thing, but Apple told me I could pay the $250 each and get them "repaired".
-I tried different FW cables
-I reset the iPods
-I scanned my iMac's HD
-I repaired my iMac's permissions
I really need help, I don't want to ruin my new mini
HELP!