Ipod showing 0kb free and not find device

iTunes wont recognize it at all. I also noticed that the iPod says "0 KB Free" in the settings menu. My computer recognizes it so I've tried erasing the iPod through disc utility but it still says "0 KB Free". I've tried resetting the iPod manually and through the settings menu, running it in disc mode and the ipod connect and eject to i pod was automatically rest, please resolves the problem, the ipod is old but its my favorite gift so please resolve, Thanks for any help!