Tonight I was syncing my ipod and i ejected it and it's frozen ever since.

It still says Connected on my Ipod and the little lock thing is still at the top of my screen. I connected it to my computer a few times and it says USB Device not recognized. It says it malfunctioned.

Does anyone know how to unfreeze it??

Try the instructions here
http://support.apple.com/kb/HT1320

Thankyouuuuuuu x