shuffle will not shuffle

With a shuffle, it should not matter what you do in iTunes; if you set the shuffle's power switch to the shuffle (NOT middle) position, it should shuffle songs from the All Songs list or any playlist that you select using VoiceOver.

When you play songs, instead of random order, what is the recognizable playback order? Are you using the All Songs list or a playlist that you loaded?

As I said, it should NOT matter what you do in iTunes. If the shuffle's power switch is set to shuffle, it should shuffle during playback no matter how the songs are organized in iTunes.

However, if the power switch is set to play-in-order, and you play from the All Songs list (and not a particular playlist), the playback order is alphabetical. So, it seems like the shuffle is playing songs in order, no matter which position of the power switch is being used. If that is the case, the cause could be a problem with the shuffle's software, or a problem with the power switch.

Therefore, you may want to do a Restore on the shuffle in iTunes. The Restore button is on the shuffle's Summary screen in iTunes. This will erase the shuffle, reinstall its software, and set it to default settings. If the cause is a software issue, the Restore will fix it.

If the problem is not fixed after the Restore, then the cause is likely to be related to hardware; the power switch is indicating play-in-order, for either ON position.

When you say "slider," that is the power switch with the off, play-in-order, and shuffle positions, correct? The older 2nd gen shuffle has a separate switch for setting it to shuffle or play-in-order.

Do you use VoiceOver on the shuffle? If you do, what happens when you load a playlist on the shuffle, and instead of playing songs from the All Songs list, you switch to a playlist using the VoiceOver button. This document is about setting up and using VoiceOver on the shuffle

http://support.apple.com/kb/HT4322

When you switch to a specific playlist (instead of the All Songs list), and put the power switch in the shuffle position, does it play songs shuffled, or in playlist order?

Well, the power switch does not seem to register the ON shuffle position. That's an odd hardware issue that I don't recall seeing here before. Since you have another shuffle, maybe you can use the one with the misbehaving power switch for things you want to play in order, such as podcasts, audiobooks, and albums (that are are intended for in order play).

The standard warranty is for one year from purchase date, but I think you mentioned earlier that you did not use it "in over a year." Even if it's out of warranty, if you have an Apple Store nearby, you may want to take it there (to the Genius Bar) to see what the Apple tech support folks think.

I just recalled a reply post I made in another topic thread...

Your shuffle cannot "shuffle" its playlist due to this hardware issue, but it CAN play a playlist that is shuffled "in order." So, if you load a playlist that has an intentionally shuffled playlist order, then playing it in playlist order will seem shuffled. This is the topic thread, with relevant post toward the end.

https://discussions.apple.com/thread/5023458?answerId=22704038022#22704038022