No menus, blank screen but plays music and resets ok

I have had my iPod nano 4G for two days. I have reset it about ten times, reinstalled iTunes three times and have reset the Nano using iTunes as well, I've lost count how many times.
The problem is that there are no menus displayed. The screen is lit up in blank white, but nothing else. Strangely enough I can play music and skip back and forth with tracks, by guessing the right buttons to use.
iTunes can see it all right and resets it, synchronises ok and so on. Before I connected it to iTunes, it did display all the menus. Then iTunes wanted to upgrade the software to 1.1.1. Since then ... all blank.
iTunes has also asked me to reinstall iTunes because it could not communicate with the Nano. This was on the second use ever, after I had just downloaded the latest version it from the Apple website. I don't like brand new software telling me it has to be reinstalled, the second time I use it.
Anyway at this stage I have reset the iPod manually many times (no Apple logo - screen comes up white but nothing else), uninstalled and reinstalled iTunes many times, reset the iPod from iTunes (always using the latest updates from Apple), I have deleted the firmware update in the PC folders to force a fresh download ... when I connect now, I get a message "The ipod "D's IPOD" cannot be updated An unkown error has occurred (-124). Unkown error? You don't say. I must have spent about two days on this **** thing, I'm sending it back for a replacement, but I have to wait a while to arrange this.
If anyone has any idea of what to do (excluding solutions involving hammers or bricks) then please do let me know, thanks in advance.
P.S: The PC has a number of other USB appliances (including another non-ipod MP3 player and a Palm pilot) and they all work fine so the hardware on the PC seems fine.

If none of the 5 R's of troubleshooting are able to solve the problem, the issue is hardware related, meaning you'll need to have the iPod serviced or replaced.  The LCD screen may have simply burned out or wore out over time.
http://www.apple.com/support/ipod/five_rs/.
It wouldn't also hurt to the let iPod's battery full drain. Then charge the iPod back up and go through the 5 R's again.
B-rock

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