I have the same problem, but mines appears to be worse, in that System 32 of my old p.c. has broken, meaning there's a 50/50 chance i've lost all data on my p.c, and so the only way of getting all my songs from the ipod into my new laptop, is to do so via the ipod itself, rather than my previous itunes.
also, when plugged in, the ipod doesn't seem to appear in my computer.
The songs are showing up in i-tunes, but even when i fiddle with prefferences, it won't allow me to play them.
any help would be greatly appreciated, thank you.