Chosen Solution

If I tried to load more that 8gb total on my iPod (120 gb) it will click loudly, then reset, corrupting the info on it. If I load less than 8gb on it, it plays just fine. I’m assuming it needs a new hard drive?

you’re right - clicking noises are pointing to a hard drive problem in my opinion there are 2 possible problems 1, the zif cable of the hard drive is not seated well 2, the hard drive is dying use the repair guide for the Hard Drive to see if the problem comes from the cable (but since it’s always on the same area of the HDD - i think it’s number 2) if it’s the harddrive - you will find here a working one