Ipod shuffle 1GB volume problem?

hello, i have a 1gb ipod shuffle, bought it 3 months back, meaning the 90 day warantee is gone, and now is exactly when its just messed up!!!.
the other day i was using my ipod shuffle and when i tried to put the volume higher, the volume steadily decreased until i couldnt hear anything. i thought that maybe the battery needs a charge so i left it for charge, but ever since its still not working.
its really annoying that something that i bought 3 months ago is already damaged? ive been keeping very good care of it and have also got the apple sock thing. ive tried resetting the ipod, also updating the software but nothing has worked so far.
if anyone could help id be very greatful..
thanks

Here's something to try sunny...
In playing around with mine, I have determined that the problem is somehow linked to the battery level indicator button. When music is playing, it seems that pressing the battery button makes the iPod more susceptible to the volume fading to nothing.
It may just be a coincidence, but there's more.
After the volume fades, the iPod is unresponsive. I've found randomly turning it on and off will eventually get it to work again, for a bit. However, while the iPod is frozen and still switched to on, try pressing the battery button. In my short experience that enabled me to use it again... at least until the whole problem happens again.
If this doesn't make sense let me know and I'll try to explain it better. Or maybe we don't actually have the same issue. Mine's definitely bunk though, but at least I've found how to make it almost usable until it's replaced.
Good luck, and welcome to Apple Discussions!
EDIT:
Hmmm, it seems pressing either forward or backward will also unfreeze the iPod. Man, I hate these intermittent, weird problems.
Let me know if your shuffle is as crazy as this...

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