My iPod Nano was defunct when I bought it 2 months ago . . .
Since then Apple have released some new software for it which makes it work properly now - no probs.
Plus Apple service is excellent.
The only other problem I have had with it was that the headphone socket came loose - I now have a brand new iPod c/o Apple!
Khushy
Try iTunes and then download the latest firmware for your iPod - reset it - connect it and wipe it clean installig the new software - other than that call Apple Direct - 0870 876 0753 - they will sort you out.