Currently Being ModeratedFeb 17, 2013 3:05 AM (in response to Ibenji12)
Seem like the seen has a problem.
Apple will exchange your iPod for a refurbished one for $199 for the 64 GB one and $99 for the others. They do not fix yours.
A third-party place like the following maybe less. Google for more.
Replace the screen yourself if you are up to it
Currently Being ModeratedFeb 17, 2013 4:11 AM (in response to lllaass)
The distortion is only when the screen is pressed, but even light taps bring it up.