You can restore your iPod to factory settings if you are having a problem that you can’t get resolved. It is very important to note that all of the songs and files on the iPod disk will be lost. Make sure to back up any files you’ve saved on the iPod disk. As long as the songs, audiobooks, etc. are in your iTunes Library they can be put back onto your iPod.
With iTunes open connect your iPod Nano to your computer via the USB cable. Wait for it to appear in the source list on the left side in iTunes. Select your iPod by clicking on it one time. Click the Restore button on the right side of the screen. You will have restore options. These are:
Restore Option 1: Restores the same iPod version already on the iPod
Restore Option 2: Restores with same iPod software version already on the iPod even if there is a new version available.
Restore Option 3: Restores with the latest iPod Software on your computer.
Restore Option 4: Restores with the latest iPod Software on your computer.
Choose the restore option you want. You will see a progress bar indicating that the restore process has started. When this stage is completed, iTunes will instruct you to leave the iPod connected to your computer to complete the restore.
During the second stage of the restore process you will see the Apple logo on the iPod screen, along with a progress bar at the bottom. Make sure you leave the iPod connected throughout this entire process.
When the restore process is complete, the iPod set up assistant will appear asking you to name your iPod and choose your syncing preferences.