My iPod is stuck at the manual reset screen (middle button + menu) and when I plug it into my computer it won't even recognize it. It says "Do not disconnect" until its finished charging then tells me "Okay to disconnect". When it's trying to reset I hear a motor type sound in the iPod and a clicking noise. There is no visible physical damage that I know of.
I own a 80g ipod classic, it's a year old.