IPod Nano v5 trouble - device blacks out anytime, doesn't work again until battery dies. What should I do?

I have this iPod nano v5 for about 2 years now, and since I bought it I had this tiny problem, which I managed to solve everytime, though it is annoying: the device has this awful "habit" to black out without any apparent reason (it doesn't receive blows nor it falls on the ground) and to not respond to any command (if I press any button, there's no reaction) until the battery dies (I usually have to wait 'til the battery dies, which oddly takes less time than if the device was just not being used - over the night, usually). Also this happens most often when the battery's full (or maybe it's bad luck?).
When I try to revive my iPod through connecting it to iTunes, it says that the device is corrupted (or something like that) and suggests something I don't remember (I don't try this for a while, since the inconclusive result) that works a while on the iPod and then says something like "Sorry, man, I can do nothing".
Have anyone had a similar issue and worked it out in a less time-requiring way? I'd appreciate any kind of help.
Greetings~

First I would have returned the iPhone to Verizon the minute I discovered dust under the camera lens and had them replace it with a new on.
Second, the instant there was a problem with sending it in I would have used a telephone and called AppleCare and discussed the issue with them.
Do the pictures that are on the phone show any of the issues you claim are present?
Incidentally, you can do an out-of-warranty replacement of the iPhone for $269 USD, not $700.
But finally, I would call AppleCare and ask to be transferred to Customer Service. Give them your service number and go over each of your complaints with them.

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