Long story short, 7th gen ipods don't play well with msata ssd drives. Best you can do is to swop out the hard drive for a newer 240 gig mechanical hard drive or a 128 gig sd card if you want to go flash but this will need an adapter.
Hope is on the horizon however as tarkan is looking into developing an adapter that would allow use of the msata drives in 7th gen devices. If you want ssd you will have to get a 5th gen and mod that.
Hope that helps.
Thanks, that does help. It just means I have to wait. I got nothing but time, so there's no problem there. And the iPod I have is new, so tearing into it is a little scary, especially since I haven't done it before. Thanks for the heads up.