Brand new Nano: screen fade out?

Brand new Nano...the screen will fade to mostly white, however you can still faintly see the icons and it will operate but the whole screen is covered with the fade out effect that normally is confined to the right edge of artist/album/song names that are too long to fit on screen.
It seems to have happened mainly when it was plugged into the MBP USB slot to charge/sync.
Has anyone seen this? Is this a malfunction that warrants return? Is this normal?

yeah, definitely not normal. I find folks describing white screen with the logo and black screens but no one with this "faded" screen. I can faintly see the controls and they will move, but you can hardly use the thing.
it's going back to BestBuy before the return policy expires. This is the first Apple product I've purchased that has failed to live up to it's expected operation. In that it has failed miserably. So, it will be ditched.

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