I have been reading reports of people fixing dead ipods by taking them apart and giving the drive a swift sharp knock, and then having them work again. It seemed rather silly and fairly idiosyncratic but I have a dead 2g ipod lying around I thought I would give it a go, after much screwdrivering to get the case off I turned the old guy over, to find it has come back to life and is showing my music collection as it was a year ago. Very odd indeed. It is currently syncing with iTunes like nothing had ever happened.
Update: It's a miracle, IT LIVES!!