Hozzle,
The experts here can tell you better than I what specifically "ATA -32 error" might mean.
Hoping this may help, this is getting to be known as the "Always Connected" problem at MisticRiver and elsewhere. If you search on "always connected" or "usb always connected" you'll find quite a bit -- unfortunately it's stuff you won't want to see

I've experienced this myself and in my case, "always connected" was the result of my 'frying' the board by using an incorrectly set 'aftermarket' charger. Reverse polarity due to an improperly wired charger or battery is also identified as a culprit.
I hope this isn't it, but...
If your main concern is the music you've backed up to the h340, you should be able to retreive it, since the problem doesn't seem to affect hardrives. Unfortunately, you'll probably need to remove the drive from the h340 to read it.
You didn't say, but I'm assuming you've already tried, unsuccessfully, to boot the iRiver original firmware. If that's the case, it does sound like the "always connected" hardware problem.
Have you swapped batteries recently? Plugged into a different charger? Used a car charger that might not have surge protection? Anything 'different' ?
Good luck!
piscator