Battery will not hold charge (at all)

I've had my ipod Nano (2nd gen) for less than a year. After a week or two of not using it, I tried to turn it on, but the battery appeared to be completely dead. So, I charged it, and when the indicator showed that the ipod was fully charged, I disconnected it from my computer. Immediately, the screen turned off, and there was no way to turn it back on. It still operates fine if I keep it plugged into my computer. But, as soon as it loses the power source, it just dies. I've tried a full restore several times. I've tried resetting it several times. I've tried charging it on several different computers. Nothing helps.
The device is still under warranty until July, but I just found out it will cost me $50 to send it in! Or, I could go to an Apple Store, which is over an hour away.
So, let me get this straight. I buy a device with a year warranty (limited, which is painfully obvious now), which turns out to be a dud, and Apple wants more money to fix it?
After 3 ipods that all have died untimely deaths...I can honestly say I'll never buy another Apple product again.

I just had to post a followup. I decided to visit the apple store in Laval, to see if I could get the nano fixed. When I showed up at the store, I was told that I needed to make an appointment for support, and to come back the next day. I was welcomed to wait to see if there was a 'no show', in which case they would be able to help. An appointment for support? When I asked how long that might take, the response was "Well, it could be all night". Then I asked if it's normal that all 3 ipods I've purchased have died within a year. The response was "well, there is no way that we can account for how people use their ipods, and the resulting battery usage". Um, I listen to music on it...like everyone else?
The staff at that store had the opportunity to make a customer happy in that one moment, and perhaps change my opinion about Apple's product quality and support. Unfortunately, my negative opinion is now only amplified.

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