The wheel on my ipod will not respond to touch or responds intermittently. I have two and it's happening with both of them. I'm trying to figure out if it's a mechanical problem or a software problem. I notice the lower the battery is the worse the problem. I can click the wheel but I can't navigate menus or control volume. I have tried resetting it but that does nothing. Help!
Make sure the HOLD switch on the top of the iPod is in the off position. Read Chapter 1, page 8, Disabling iPod nano Controls - iPod Nano 5th Gen. User Manual (direct PDF download)
If restoring the iPod does not work, you may have a hardware problem. Take your computer to an Apple Store. The staff will be able to check to determine if your iPod is having hardware issues.