iPod won't show on iMac, and album covers are mixed up....why?

Extremely weird problem with my iPod Video.....

It won't connect to my iMac, like it won't show on the desktop or in my updated and reinstalled iTunes, but it works just fine on my MacBook....

Not only that, but when I play just about any song on my iPod, all of the album covers are mixed up and with the wrong songs / artist.....what should I do? I don't want to restore it to factory settings at all because I have so many good songs on it....what should I do?

Heres an update:

The iPod seems to make the MacBook go slower and/or freeze....

The iPod just popped up on the iMac after literally being connected for the last 3 hours.

But this is what it shows me:



It now says I need to restore it back to factory settings, but I can still play songs on it when its not connected....how do I get the songs off the iPod before i restore it?