I got it working again yesterday by adjusting the main partition to just below 2 gig so it would be FAT16 not FAT32. I found a youtube video with a player running the same operating system.
YouTube - iPod nano vs. iPod nano CHINA
In case its running a firmware from an older unit that may be compatible with it.
Just so you know, I have tried all the fixes found online, on the old site and on this site. I have used MP3 Disk Tool to adjust the partition all the way so the encrypted section was largest and formatted and brought it so the main partition was biggest again but i cant seem to get the hack off. In the Format tab it always claims to be 4 Gig and on the encrypted and partition tab it still claims its 8Gig. I have tried dumping the firmware but it just claims unknown firmware and refuses to do it.