Chosen Solution
Yesterday I installed a iFlash ATA1 board in my iPod but keeps showing a folder icon and a dead iPod. (I’ve tried every drive format such as FAT32, exFAT and Mac OS Extended journaled and even tried using a SD card from a different brand that would work in the iFlash boards) I put the HDD back in the iPod it booted normally so I knew that my cable wasn’t broken. When I tried to put the iFlash board back in the iPod it still didn’t work and the HDD doesn’t work anymore.
@scharre possible that the iFlash shortened out the board or the connector. Verify all connections etc. Place the iPod in Diagnostic Mode as described on here ( as well as on here and multiple other places) and see what it tells you. Get a USB to Zip connector and see if your computer can still detect the HDD when you connect it via USB port.