Chosen Solution
When I plug the iPod into iTunes it tells me the device is in recovery mode, and it needs to be restored to connect to iTunes. I do the restore, but it still won’t show up in iTunes and eventually tells me the same thing again, to restore the iPod. The display stays in dim mode with the blinking O with a line thru it, and the ‘do not disconnect’ message. I suspect I need to replace the logic board but I’m not sure. Suggestions/Opinions?
This sounds like it could be an issue with the Hard Drive. I would recommend replacing it with the iFlash Solo or a similar device. iFlash Solo official page iFlash Solo on eBay US iFixit Storage Replacement Guide