I was close to giving up on this "
New 16GB 1.8" 4th MP3 MP4 FM USB Player Rec+GIFT Green" aka pos ChiPod - but this worked to make it a useable 2GB nano (which isnt bad for $20 shipped)
Anyways - Just wanted to say thanks for posting a solution that worked for mine. I can now stop wasting time on this.
Anyone else with the AK2025 mem hack - try the bootable linux fix CD solution that Sunchi posted above this post, it just may work for you as well.
Thanks again