Will not reset; click wheel unresponsive

Since it sounds like you are reasonably technical, and you know how to reset the iPod, it is most likely busted.

Here are the steps you have probably already walked through, just in case it may still work.

If the iPod is connected to a computer, use the iTunes app to "eject" it (funky up-arrow next to the iPod in the device list).

Flip the 'hold' switch on then off. Make certain it is OFF.

Reset 4 or 5 times with the select & menu button combination, on a flat surface, one finger from each hand, making certain nothing else touches the front of the iPod. Hold for 10 seconds.

Try looking at this in case I missed something: http://support.apple.com/kb/ht1320

If it still does not work, talk to an Apple Expert: http://www.apple.com/support/expert/

If you want to try something else before spending money, disassemble the iPod, disconnect the battery, and reconnect the battery. This will give you a true power cycle reset.

Or you could try a total discharge (leave it on, keep turning it on when it goes off, until it will not turn on anymore), then charge it (do not plug it in to a computer, plug it into a power adapter). That might give you the same results as battery removal without the hassle.