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Apple has launched the iPod Reset Utility 1.0.2, which can be used to restore 1st and 2nd generation Apple iPod shuffles back to their original factory settings. This software is a free download from Apple’s support website and is available for Mac and PC. Warning: All music and data on the iPod is erased during the restore process.
iPod Reset Utility 1.0.2 For Apple iPod Shuffle - TechFresh, the Tech and Gadget Blog says:
[...] Link via iPods [...]