I haven't had much luck with the iPod Touch. I bought one a few months after it was launched, mainly because I didn't want to pay the contract on an iPhone. The iPod Touch gives you 90% of the features of the iPhone and only the phone and GPS aren't available. Since I already had a good phone, the only thing I have't got is the GPS location facilities. I can live without them.
Anyway, first the earphones died after about six months use. Fortunately, I had a spare pair lying around and so I used those. Then four months later the screen developed dead spots and this meant that tracks and menu options couldn't be selected. I took it back to the Apple store and they replaced it. (It's incredibly irritating how you have to make an appointment and come back later, actually the next day in my case, even when the store is empty and there are staff standing around doing nothing. I could have demonstrated the dead spots in 30 seconds, but no, they said come back tomorrow - when it was actually twice as busy. How crazy is that?)
The latest problem is that it's stuck on the same song. Select any song in any album or playlist and it will play it and then repeat it. It won't go on to the next song. Every couple of minutes I have to turn it on, unlock it, move to the next track, and then turn it off. It's so annoying.
This time, however, it wasn't the iPod that was faulty. Somehow a setting was changed that told it to continuously repeat the same track. I suspected as much, but it's not very obvious where the setting is. I looked for it everywhere for it and couldn't find it and was beginning to think the iPod was faulty. Do a search at Google and you'll find other iPod owners experiencing the same problem. Google also came up with the solution to, at least a link to it anyway.
so if your iPod will only play one track, select a song and play it. With the album artwork on the screen, tap the screen to display the time bar. At the left hand side is an icon and if you tap it you'll find that it switches between three different states. One is to stay on the same track and repeat it indefinitely, another repeats the playlist or album when it gets to the end, and the third turns off the repeat function and it just plays the album tracks or playlist tracks from start to finish. Problem solved!