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Try to reset the iPod by holding down the menu and center button - usually need to put the iPod on a table and use 2 fingers.. Hold for about 5 seconds till the Apple logo appears. Otherwise try a restore in iTunes but that erases everything.
Hold in the play button for 10 seconds to reset. If that fails:
iPod shuffle Software Update and Restore
Apple periodically updates iPod shuffle software to improve performance or add
features. It is recommended that you update your iPod shuffle to use the latest
You can choose either to update or to restore the iPod shuffle software.
• If you choose to update, the software is updated, but your settings and songs are not
• If you choose to restore, all songs and data are erased from your iPod shuffle. All
iPod shuffle settings are restored to their original state.
To update or restore iPod shuffle with the latest software:
1 Go to www.apple.com/support/ipod and download the latest iPod Update. The update
has the latest software for all models of iPod.
2 Double-click the software install file and follow the onscreen instructions to install the
iPod shuffle Update.
3 Connect iPod shuffle to your computer and open iTunes. The iPod Updater application
If you’re using a Windows PC and the iPod Updater application doesn’t open
automatically, you can find the updater by choosing Start > All Programs > iPod.
4 Follow the onscreen instructions to update or restore iPod shuffle software.
If you use the iPod Updater application and it doesn’t see that iPod shuffle is
connected to your computer, turn iPod shuffle off and turn it on again.
it looks like in all of these cases it's either a battery or a motherboard issue, both can be replaced by a tech savy user or friend if you use an iPod touch repair guide, the parts are readily availabe on ebay.