Try:
- Reset the iOS device. Nothing will be lost
Reset iOS device: Hold down the On/Off button and the Home button at the same time for at
least ten seconds, until the Apple logo appears.
- Go to Settings>Safari and delete History, Cookies, data and other stuff.
- Reset all settings
Go to Settings > General > Reset and tap Reset All Settings.
All your preferences and settings are reset. Information (such as contacts and calendars) and media (such as songs and videos) aren’t affected.
- Restore from backup. See:
iOS: How to back up
- Restore to factory settings/new iOS device.
If still problem, make an appointment at the Genius Bar of an Apple store since it appears you have a hardware problem.
Apple Retail Store - Genius Bar
CAUTION
Before you restore the iPod make sure that your iTunes library has the version of apps that are presently installed on your iPod. Many apps have been update and the update apps are not compatible with the 1G iPod and 2G iPod. I would do that by deleting the apps from your iTunes library and then transfer them to iTunes. See:
iTunes Store: Transferring purchases from your iOS device or iPod to a computer
In iTunes 11 use Control+B to show the Menu bar then go to iTunes>File>Devices>Transfer Purchases