Ipod nano screen fade then locks

has anyone had this problem where if you hold the menu button down, then the 2gb black ipod nano locks up and the image on the screen fades away slowly until the lcd is blank? then the nano won't start up anymore (until it is plugged into a computer). toggling hold does not work, and pressing both the menu and center button doesn't do anything either. is this a defect for my particular nano or is this possible some kind of software bug that needs some kind of restoring?
also, on a related note, plugging it in to the computer (xp) sometimes brings up the apple logo then it jumps to a discharged battery lightning logo (battery is full). i have to keep plugging/unplugging until i get to the "do not disconnect" screen, then the nano works fine and shows the full battery on the upper right (to prove its charged).
any help on this would be great, thanks!

I figured out the cause of this problem, basically if you reset your ipod (menu and center), then the nano freezes and the screen image fades... has anyone had this problem? I'm also having a very very difficult time trying to get the nano back to a working state since none of the buttons work... when i plug it in to the computer, the screen shows an apple, backlight flashes on for a second then goes away, and it quickly jumps to a lightning bolt battery... unfortunately the battery is fully charged (green) from before the nano froze, and constantly plugging/unplugging the usb connector sometimes brings the nano back to normal working condition...
I was wondering, what happens on a normal nano when you reset it (menu and center) without being plugged in... does it freeze as well?
I also tried a full restore via ipod updater when i finally got it working, but the problem still exists and i hit menu+center and froze it and now i am plugging/unplugging to the computer to try to get that 1% chance it will boot up properly... any advice?

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