iPod has read/write errors, clicking noises

I bought a used iPod Video (5th gen), and immediately restored and updated it using Windows iTunes (v9). However, when I started syncing my library to it, it would fail part-way through with the error "The ipod [name] cannot be synced. The requested file cannot be found."

At this point, the iPod locks up and makes a clicking noise (click/clack), like a bad HDD. I have to reset the unit to use it again.

I suppose it needs a new HDD. Am I correct or could these symptoms point to a different problem?

Thank you all for your help.

-Chris