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Even finding an exploit would still make the process extremely lengthy. All that gives you is a way to execute code which Apple have not approved. But what code do you then run? You can't disassemble the existing firmware because of the encryption, so you don't even have that method of working backwards to find out how to tell the hardware to do things.
In short - funding and getting coders better than we have already (which would be nigh on impossible - in my experience they're about the best you'll find anywhere) won't make a blind bit of difference.
The only current 3rd generation iPod that I'm aware of is the 3rd generation Nano.
I have seen the new pastel-colored Shuffles referred to as 3rd generation. I just bought a purple one and a blue one, and both of them work wonderfully as drag-and-drop mass storage devices in Windows because I installed the iPod Shuffle Database Builder in the root of each player's drive. No iTunes needed.
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