IPod's Frozen, but I've tried all suggestions posted in other threads

Question

After using this first gen iPod nano since around the time of it's debut, it's served me well enough. Well, I guess that doesn't count the terrible experiences I've had with iTunes and other iFaggotry, but we're trying to be optimistic here, so I'll just cut to the chase.
Today, while listening to music, the iPod simply stopped working. Of course, I just held the center and menu buttons to reset it, and this did nothing for about ten tries, then it finally rebooted. The battery was charged about 75% of the way, so it shouldn't have been a power issue, but I plugged it in anyway.
So I'm sitting at my computer playing games (iPod's still plugged up, has been for a while at this point) when I decide I feel like listening to music. Lo and behold, this iCrap is indefinitely frozen. I unplug it, ensure that the hold switch is set to the white position, and press the menu and center buttons. Nothing happens. I did it a few more times, each time toggling the hold switch, and it's not doing a thing. It's basically a paperweight, albeit a light one, and about this, I'm ******. This was an expensive device, and I expect my money to not be wasted. Is there any thing whatsoever I could try to get this thing back to working condition?
Oh, and while proofreading that, I just tried to reset it again, and I heard a single faint popping noise after about six seconds of holding the buttons. I'm not quite sure if that came from the can of soda beside me, or the iPod, and I surely don't want to think it was an electrical pop, but it sure sounded like one. I hope that helps with a solution.
If it is simply broken beyond repair, I can't contact support and have it serviced or replaced due to it being a little old, and this saddens me. Apple should take better care of their customers when they're investing so much of their hard earned money into such a trivial device, or at least extend the warranty a little.

Answer 1

It comes in and out of it's coma every few hours, pretty randomly though.
I've tried restoring it, it didn't help.
When it goes back into frozen mode, it's usually right in the middle of a song, and the song will start to garble and cut out, and I'll hear crackling coming through the headphones. It takes usually two or three attempts at a reset to simply clear the screen. Then, after letting it sit for a while, it'll reset just like normal.
The battery's fully charged.
I wish they would just replace it for free though. They didn't replace the headphones that broke within a month. I'll probably go with a different company when I have to buy a new one, which sadly, is most likely going to be very soon. Sure is a terrible turn of events, and I can't say I trust Apple with my purchases anymore, though I guess one defective product among many is unavoidable.