Strange 5G Ipod Problem (30GB)

Ive had this ipod for about 2 years now ive had two real issues with it. Ignorance at the time led me to purchase a Best Buy service plan. (More on that later).

My ipod will not reset, I can restore the ipod to factory settings and then obviously it resets. But by moving the hold switch and pressing Menu + Select the ipod will do nothing. Ive tried this after two restores. Also, Ive been trying the ipod in my new car stereo and once i plug the ipod in it keeps cycling through the "Ok to disconnect" screen. Ive tried a friends 5G ipod on my stereo and it works just fine. Any tips or suggestions, I have a trip in a few days and id like to use the ipod through the dock connector instead of Aux.

(In case you were curious, sent the thing off once through Best Buy for a bum headphone jack and the other time the unit would not power on even after being charged for several hours but they sent it back saying nothing was wrong with it?)

Thanks.

Hmmm... I've always done a reset without touching the hold switch at all (i.e. unlocked). Maybe that's the problem, or is there some additional degree of reset that is supposed to happen when using the hold switch?

Id reformat the hard drive. Put it in disk mode and use the disk utility and reformat it.

Then put your firmware from apple on it. I used to think that my HD was screwed but then I restored it and It was fine!

Ive been going back and forth between Windows and Mac formats, but ill have to give this a try.

Update: So I wiped the drive from disc utility, reloaded all my software update the ipod again, and the ipod is still not working properly. Still wont reset. Im going to try to find older firmware (1.21) and see if that works and seeing if my FM transmitter works. Thanks for the help so far!

Maybe its not software. Id search and see if there is any way to see if you logic board is going. They are reasonable on ebay but it can be tricky to put in.