I had the same problem - using 160GB Ipod with over 20000 tracks and artwork - I tried a few things but still had the problem until (3) which fingers crossed seems to have done the trick
(1) Turned Artwork Off in car media centre - problem came back pretty quick
(2) In addition to (1), deleted artwork off ipod (enable disk use in itunes when Ipod is connected, then in Windows Explorer find your ipod drive there should be a folder called "ipod control" (it may be hidden) open it and there should be one called "Artwork" - open it and delete contents. This worked for a couple of weeks then the ipod froze again.
(3) In addition to (1) and (2) I also changed the USB connector cable from a cheap extendable one I brought for 2p on ebay back to the original apple cable.
Since then for the last couple of months I've had no issues and haven't had to reduce the number of tracks. What you need to remember to do is every time you synch your ipod with Itunes it will recreate the Artwork folder contents (see (2)) - just redelete them.