IPod Touch, 1st generation, can't use iTunes or the App Store

I have an iPod Touch running iOS 3.1.3. All of a sudden, I can no longer buy music off iTunes or apps off the App Store because the "Install" or "Buy" buttons shrink to a very small size (see attached screenshot) and do not respond when pressed. I have re-booted the iPod twice with no affect.
Has anyone else experienced this sympton?

Hi. Same issue as you guys. I'm quite new to Apple products, so it has come as a surprise to me that this issue has now been dragging on for well over a week. Nearly 2. Does anyone at Apple HQ take any notice of these message boards?? If so, an official response would be most welcome.

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