Making strange noise & won't restore?

Dzeni, the only thing that I can think off, which could be making strange noises, is the hard drive. Try and place your iPod into diagnostic mode. Check on here how to do that. Or you can try and place it in disk mode, and see if you can access the drive. This will tell you how to do that. If you can access your drive, reformat it and see if that makes a difference. From your short description, I would say that you will need a new hard drive. The guides to work on your iPod are here and the hard drive is available right here as well as many other places. Hope this helps, good luck.