UPDATE: The technique didnt last long. I took my iPod out for a walk, and it started clanking again. 
Well, this isn’t exactly emerging technology, but felt like posting it out here.
My 4th generation IPod died this weekend, and all efforts to revive it were in vain. The Menu + Select option to reset the pod were futile, with metal clanking noise coming in from the iPod. I gave up this morning, accepting the fact that it is dead.
I Googled the trouble one last time (iPod shows Folder Icon with exclamation icon), and came across something where it was suggested to drop your iPod on the floor (from approx. 3 inches) OR hit it on the right side. I looked at the iPod and decided to do so. After a couple of drops, raising the 3 inches to almost a ~12 inches, nothing improved. Then I tried dropping it on its right edge, and try again. Lo & Behold! It booted up nicely into the main menu, and gave access to my music. The tracks played smoothly and its charging up now.
Not sure how long this will survive though 