If your iPod nano has an LCD screen problem then read on otherwise disregard the following response ( copied from another posting):
"Good news! The iPod nano which appeared to me as a 'cracked LCD screen' with no other physical signs of the crack on iPod and which, I believe, Apple interprets as an 'LCD screen anomaly' has been replaced, free of charge. It was purchased last November.
If you feel your iPod has the same issue, go to the iPod service link
http://depot.info.apple.com/ipod/
On the second or third screen, when you see the option to replace parts or replace whole unit, select whole unit replacement. I was stumped on that selection. If Apple determines that the iPod meets the LCD screen anomaly criteria, they will replace your iPod.
A warning: I spoke with three service people at Apple and received three different answers. Be persistent."
If this question helped you, please help three other iPod users.