My iPod touch (2nd generation) has started to act very odd following a sync I performed 2 days ago!

It switches on & off at random, will not let me adjust the volume and has also started to take screenshot pictures whenever I press the home button. To top it all off, it also switches off whenever I press the volume up button.

I have done a factory reset but the problems still persist.

These problems never occured prior to the sync and Apple want £80 to replace the item.

Help!