The best way is to connect the ipod to PC preferably Apple series iMac (2011 and older models only) with FiREWiRE input ( this is a must-USB does not work at all ) and FORMAT it by using the "Disk Utility" app first and then RESTORE it via iTunes as for the New iPod.
Red X Icon on iPod Classic mainly means 2 things. First ,HDD Flex loosens . you must open the ipod to check if the flex is in right position to make sure reinsert it to mainboard and lock it and test the ipod. If this does not help Second solution , the HDD is faulty ,you will need to replace the hard drive.Good luck.:
I had the same problem which nothing to do with LCD screen..it is SW related....The solution is ; FORMAT the ipod COMPLETELY as an external HDD and plug it to iTUNES for RESTORE action...Then Bingo..iPOD will be alive again as it should be...Take care..