Unfortunately, this happened after I just traded-in my dud Griffin iTrip for a new Podfreq. Many thanks to Jonathan Wrigley at AppleCentre Moonee Ponds for his assistance in getting an in-car solution that is better than the iTrip. Jon let me road test the Podfreq for an hour before making a decision and then even took back my dud iTrip without the packaging. What a dude. You can find AppleCentre Moonee Ponds at 1 Puckle Street Moonee Ponds and you can find Jon's great moblog here. Jon - any ideas on how to fix my iPod now??? :-)
UPDATE: Hey, I got it working again, how about that. Instead of pressing the PLAY-MENU keys simultaneously (as suggest in MacTalk), I pressed the middle button and the menu key. You beauty. Still doesn't explain why it froze though. Good to see Apple products also suffer from BSOD!
UPDATE 11 MARCH 2005: Glad to see this post has helped so many other people. It just helped me as well! My iPod just froze up on me for the first time again since November. I totally forgot what the reset sequence was. Good thing I blogged it!