The quickest thing you could try is to use iTunes to restore the iPods operating software. If that doesn't work, I'd take it back to exchange it.
If you like my post, or solution to your issue/question, go ahead and click on the little star by my name and/or accept the post as the Solution. It makes me happy.
I'm NOT an employee of Best Buy, or Geek Squad, none of my advice is to be taken as the official stance that Best Buy will take on your situation. My advice is just that, advice.
Unfortunately, that's the bad luck of any electronic, there's going to be bad Apples... wait that's a horrible pun.