iPod touch show wrong GB

I have an ipod touch 3 gen 64 GB. But I tunes says it is 2 GB, and the Ipod itself says 893 MB capacity. It looks like some of the memory has failed. I have reset, recovered, etc. Any thoughts ? Does anyone know exactly where the memory is on the motherboard ?

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Gerry Blodgett, check step 11 of this guide.

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Gerry Blodgett will be eternally grateful.
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