Only 62 songs, but says 537 songs???!!!

Hey Every1!
I just got a 2GB nano for christmas. I opened the gift on the 26th (today) and registered it and set it up. When I put some songs on it (i counted and only 65) and it was fully charged. I went to play a certain song and it stops 40 seconds into a song, and goes to the main menu, and erases all the settings I changed! I reset it by switching the hold switch on & off, then holding Menu and Center (because it was acting really strange.) I then go to "Songs" in the Music menu, and play a song. It says song 1 of 537! I check my play list and it goes back to 1 of 65 songs. I then go to Settings-->About and it says the following:
Colby's iPod
Songs 65
Photos 13
Capacity 1.7 GB
Available 1.4 GB
and so on and so on...
Can someone plz help, could it be some type of virus for iPods?
Message was edited by: ipod-rookie

Ok but have you done it? You have not mentioned if you tried it and what happened.

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