The cursor on my fourth Gen. iPod Nano isn't working, is this fixable?

Question

I got my iPod Nano in 2008, shortly after it was first released. About three months after getting it, I lent it to my friend, because she had a thousand songs and atleast 4 dozen CDs. She was going to sync them for me, I got it back two months later and it was pretty banged up. No dents. Just scratches to the paint. I was pretty ******, but it worked fine. So, I didn't think too much of it at the time.
Two years later, it started to have problems. As it is a fourth gen. it is supposed to change songs when you shake it. I didn't use that feature so often at first, because I had, had a first gen. shuffle and wasn't really comfortable shaking it. But, when I started it changed songs with a fairly light shake. But when it started to experience slight problems, (would randomly change songs when it was sitting perfectly still), it also became harder to change the song by shaking it.
It eventually took more and more force, until I didn't want to shake it, because it practically took hitting it against the palm of my hand to make it change songs.
About a year ago, the cursor that lets you change songs and control the volume died. I didn't have any other music player so I got a pair of headphones to control volume and went back to shaking it to change songs, since that still worked. And all that was needed to pause it was to remove the headphones.
Now, everything works fine besides the cursor, and I was wondering if that is a problem that could be easily fixed, if it is a problem that can't be fixed or if it is a problem that CAN be fixed but costs about as much as just replacing it.

Answer 1

Try the standard fixes:
- Reset:
Reset iPod touch:  Press and hold the On/Off Sleep/Wake button and the Home
button at the same time for at least ten seconds, until the Apple logo appears.
- Restore the iPod from backup via iTunes on yur computer
- Restore the iPod to factory defaults/new iPod.