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Apple Address iPod nano Screen Issues
"This is a real but minor issue involving a vendor quality problem in a small number of units," Schiller told MacCentral. "In fact, this issue has affected less than 1/10 of 1 percent of the total iPod nano units that we've shipped. It is not a design issue."
Affected users are asked to call AppleCare for iPod replacement.
A separate issue which has received a lot of press has been complaints that the iPod nano screen is very easily scratchable. Apple reports, however, that the Nano is made of the same materials as the recent 4th generation iPod.