Thanks for the help, I'll try this when I get home and see if it works!

Ok so I typed in what you said, and I guess it must have worked.... here's what terminal said:
1+0 records in
1+0 records out
512 bytes transferred in 2.086523 secs (245 bytes/sec)
I guess this mean it worked? I'm now not sure what to do, it says in the instructions to eject the iPod, do I do this through disk utility or just pull it out? I tried to eject using disk utility and it made my iPod crash again
update:
I think I managed to successfully format my iPod properly! However, when I used the Rockbox Utility, I select where my iPod is and the type and click on "Complete Installation" under the "Quick Start" bar and it says the installation is complete. When I quit Rockbox Utility, it then says:
Rockbox boot loader
Version: 2.0
IPOD version: 0xFFFFFFFF
Toshiba MK3008GAL
Partition 1: 0x0B 28537MB
Loading Rockbox...
Error!
Can't load rockbox.ipod:
File not found
Hold MENU+SELECT to
reboot then SELECT+PLAY
for disk mode
What exactly is it I'm doing wrong? I've been following the instructions in the manual as far as I can tell.... am I missing something?
update: seems to be working fine now, though I'm still not sure about how to use directories to install different files....