The apple ipod nano warranty?

Is the 1 year warranty part for replacing your ipod nano if it breaks and the 90 days for the phone questions or is it the other way around?

I know this is in the Help part but i didnt quite understand.

Also does the 1gb ipod nano hold
240 songs and 15000 pictures
or 240 songs or 15000 pictures

Ipod Nano 1gb

Ipod Nano 1gb

Ipod Nano 1gb

Ipod Nano 1gb