iPod will not mount to computer. Hard Drive bad?

When connecting my iPod to my computer it no longer mounts or shows up in iTunes. Even when I try using the Disk Utility to try to mount it. I get error (...could not be mounted. Try running First Aid...) I then run First Aid and Verify Disk. I get (This disk needs to be repaired....) I then run Repair Disk. I get message saying that Disk Utility can't repair and that I should reformat the disk.

So, is my disk going bad? I do get hard drive clicking sometimes when playing songs; lock-ups, freezes, skipping on songs.

Thanks