iPod Reset Utility is a tool distributed by Apple themselves, that solves the error and allows you to restore the contents of these devices.
The restoration process fully removes all the music and data from your iPod and installs the most update iPod software on it.
Thanks to this you'll be able to enjoy your Apple portable device as if they were new, solving bugs that could have suddenly eliminated all of your musical library.
It's important to take into account that this utility only works on the first and second generation iPod shuffle devices, and that it has been developed to fix a specific error that these devices had. If we have another iPod model and for any reason iTunes can't restore it, it won't be possible to do so with iPod Reset Utility either.