Yesterday I awoke and took my iPod out of it's dock to find that it was EXTREMELY hot, the HD had been running all night. I looked at the screen to find that it said "Disk Mode" and "OK to disconnect" with a check above it. I reset it but it did nothing so I plugged it in to my mac and tried to restore it and I think it did but then it said that it needed to restart to complete but it wasn't restarting so I manually restarted it but it came back to disk mode. I'm stuck, should I return it?

BTW its a 3rd gen 20 gig.