Hey there,
Have you tried toggling the hold switch on and off? Also, keep trying to reset the iPod by holding the "Menu" and "Select" buttons until the Apple Logo appears.
If still no luck, it may be a good idea to restore the iPod. Keep in mind though, that restoring the iPod will delete all the files and music from your iPod, so make sure they are backed up on your computer first. The Article below provides step-by-step instructions on how to do this. Best of luck. Hope this helps.
http://support.apple.com/kb/HT1339
B-rock