Error during restore now my Mac wont' read my iPod?

I bought a used ipod with the smiley face problem. I was thinking of upgrading to one of the 240gb drives to begin with but tttempted to do a restore by forcing it into Disk to see if I could get it to work in the meantine.

My Mac first read the iPod began to restore it but then it stopped midway and gave me an error message stating that it could not read the drive popularly.

Now, when I reconnect the iPod my Mac doesn't see it. I even tried resintalling iTunes as per the instructions in Apple's support system. Even if I force into disk mode again.

Any ideas? Is it the drive itseld? If I install a new drive will that do the trick?

Anyone?

Thanks for the answer! I don't find SMRT DAT.The options I had were: NTF, MEMORY, IO, POWER, ACCESSORIES TEST, SYSCFG, and RESET. IO was the right option and then there was a link for harddrive then HDSMARTData.

Here's what I found:

Retracts: 29

Reallocs: 1023

Pending Sectors: 0

PowerOn Hours: 200

Start/Stops: 6551

So I guess I have a bad hard drive? Can I upgrade this iPod to a 240gb kit without any other problems?

Thanks! I really appreciate the help.