OK, I went ahead and formatted it after I saw some of the artwork had been corrupted on the iPod nano. After that, iTunes recognized it as corrupt, and I attempted to go through the restore process, but my iPod is now frozen and after being asked by Windows 7 RC, I am attempting to format the iPod again. I think the original problem was actually that I did not think the iPod was connected since the scan and fix window (mentioned above) was hidden behind my other windows (this wouldn't happen if new messages, especially important ones, appeared on top instead of the file folder simply becoming red) and iTunes was not recognizing the iPod, so I disconnected it without properly ejecting it (which always corrupts the artwork.db file on it and makes me have to restore it).