Apple has posted a new version of its iPod shuffle reset utility which allows iPod shuffle (1st and 2nd generation) users to repair the tiny digital music player in case of firmware failure or erroneous behavior.
iPod Reset Utility 1.0.3 for Mac (3.6MB) and Windows (4?9MB):
Use iPod Reset Utility to restore the following iPod models back to their factory settings, when iTunes is unable to do so:
• iPod shuffle (1st Generation)
• iPod shuffle (2nd Generation)
The restore process completely erases all music and data on your iPod, and installs current iPod software on it.
For detailed information on this Update, please visit this website: http://docs.info.apple.com/article.html?artnum=305204 [1]
Note: iPod Reset Utility is intended for use only with the iPod models listed above; other iPods are not supported. If you are not sure which iPod you have, see Apple Support article 61688: Identifying iPod models