After failing to install the Runcore SSD, I began my search for an alternative. Went to taobao.com (the eBay equivalent in China) and found a 64G Sandisk SSD for RMB 380 shipped (around USD $60). I went ahead and ordered it, thinking if it didn't work, well, I could just use it as a portable drive...
The drive arrived this morning and I installed it right away. Things looked good cos the screen instructed me to connect to iTunes to restore! (With the Runcore, a big red cross was shown instead). After a while my iPC was restored. I've been listening to it for an hour and so far it's fine.
The iPC is now substantially lighter and feels faster...with the 160G HDD, there's a slight delay when you click to play a song, with the SSD it's instant. I'll do some battery tests in the coming few days.
As you can see in the attached pic, it's only half the size of a normal 1.8 SSD HD. The seller told me the Sandisk has no cache but for iPod I guess it doesn't really matter.