Apple has posted
an updated version
of their iPod Reset Utility. The iPod Reset Utility is used to reset iPod shuffles back to their factory condition, when iTunes can’t.
iPod Reset Utility 1.0.2 is used for both first and second-generation iPod shuffles. It complete erases all music and data on the iPod shuffle, and installs current iPod software on it.
It can be used to fix iPod shuffles that suddenly can’t play music and can’t be restored by iTunes, are no longer recognized by iTunes, or may be in “Recovery mode” or identified as a “USB DFU device.”
Apple did not specify what had changed in the 1.0.2 release.