Ipod Nano 7th Generation - Not Charging / Error Msg From Comp 'Attached Device Malfunctioned'

My IPod Nano 7th gen arrived last night.  I was able to turn it on and select language 'english'  When I connected it to my computer it did not recognize my iPod, so it also did not show up in iTunes,  Error message: "One of the USB devices attached to this computer has malfunctioned.  and Windows does not recognize it." 
My Nano turned off and went blank.   I have tried to reset it.  Nothing works, just blank.
No charge icon, I have tried all USB ports on my comp, but nothing works- (but my USB ports work fine)  I have read that if my iPod has not been charged fully, the computer my not recognize it.
I am now using an adapter and trying to charge it thru the wall power socket.  It has been connected for half an hour.  Still cannot turn iPod on.
I have Windows 7 running on comp.  Itunes is current version 10.7.  I have rebooted my comp several times and re-installed iTunes.
I have an iPhone and an iPod shuffle that are both synced with iTunes on this comp, they work fine.
Is my iPod broken?  Do I send it back?  Anyone else having the same problems?  Please Help !!

I had this problem as well.  I have a PC running Windows 7. I have installed the latest iTunes 10.7 software (64 bit). I reset the nano by holding down the start and home button for 10 seconds.  Then - I plugged it into a PC running Windows XP and was able to format the iPod. Ejected it and plugged it into my Windows 7 computer and then the computer recognized it and I was able to load it. There is some problem with iTunes 7 on Windows 7.

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