Help!! ipod touch 2nd gen (8gb) is running by itself!

I just got a ipod touch 2nd gen (8gb) from a friend.
This ipod has some problem.. it is running by itself! When I on it, and for example go to Settings, it will just randomly go to a next selection as if responding to my selection but I never touch anything.. I've tried to reset to factory settings and it's updated to ios4.2.1 but still no use..
anyone can help? greatly appreciated!!

When restoring an iPod to factory setting fails to resolve a problem that indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.

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