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You can use iPod Reset Utility to restore first and second generation iPod shuffles back to their factory settings, when iTunes is unable to do so. The restore process completely erases all music and data on your iPod, and installs current iPod software on it.
iPod Reset Utility 1.0.4 is a 4.9MB download. It requires Windows 2000 with SP4 or Windows XP (SP2).
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