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Hi, Please download the latest Itunes software. Connect your Ipod and then you have a option called format your Ipod to original settings.. Also make sure you dont have any virus in Ipod..Hope this helps you..Thank you!..
From Apple.com Support Website.
If the front status light on your iPod shuffle blinks orange and green when you press any button, then your iPod shuffle is experiencing some type of error. Try these troubleshooting steps to resolve the problem.
To troubleshoot the iPod shuffle error light:
1. Turn off your iPod shuffle
2. Wait a few seconds
3. Turn your iPod shuffle back on again
If this does not resolve the problem:
1. Check to make sure there are songs on your iPod shuffle
2. Use iTunes to add songs to iPod shuffle and try again
If your iPod shuffle continues to display a blinking orange and green light, use iPod Updater 2005-02-11 or later to restore iPod shuffle, and then add songs with iTunes.
If your iPod shuffle still shows a blinking orange and green light after trying all of the above steps, your iPod shuffle may need service.
Best of Luck.