try google and see if anyone else had this problem, if that fails try the local geek (theres always one), if you ARE the local geek then working on the principle that it`s already broken so you can`t break it, I would try the following...
run the battry COMPLETELY flat
recharge
reset
check
see the manual to see if there is an onboard format system built into the Iriver
if there is then format from that
check
if that fails then load the software for it onto the PC
see if theres an option to format from there
if there is then format
check
if you are on XP and formated from the desktop then you may have accidentaly formated it as NTFS, since an NTFS XP system only does NTFS formats by default the Iriver probably can`t make sense of it, I favour this idea since the pc can read the Iriver as a hd but the Iriver can`t and NTFS is propriatery and well guarded by MS (so the Iriver wouldn`t be able to read it...hmmmm!)
[edit] with the Iriver plugged into the pc check it`s properties as a hard drive, if it says the filesystem is NTFS then that will be the problem imo since MS don`t pass the NTFS format around, so the Iriver can`t know how to read it.
find a 2000, windows 98 or xp machine running on fat32 filesytem and format again
check
if those fail
find the latest firmware flash for the Iriver
download it
read ALL the readmes
flash it
that should totaly reset it since it just got a brand new rom
check
if that fails they try one last format under the new rom
check
try it on another machine (even xp has it`s pure dumbass moments)
check
see if you can find any Iriver "tools" that may rescue the HD
try any you find
check
check your house insurance
wait for claim
cash cheque
buy new Iriver
these posts are not in any preffered order btw, I suspect when you deleted all the files, XP noticed the drive was empty and decided to take the opportunity to reformat the HD into the "better" (for it) NTFS filesystem since it thought the Iriver was just an external hd, leaving the Iriver unable to read its own drive.