Apple has a global replacement program for the first generation iPod nano in order to address issues relating to overheating of the batteries.
Apple has already provide replacement options in South Korea in 2009 and in Japan in 2010.
From Apple;
Apple has determined that, in very rare cases, the battery in the iPod nano (1st generation) may overheat and pose a safety risk. Affected iPod nanos were sold between September 2005 and December 2006.
This issue has been traced to a single battery supplier that produced batteries with a manufacturing defect. While the possibility of an incident is rare, the likelihood increases as the battery ages.
Apple recommends that you stop using your iPod nano (1st gen) and follow the process noted below to order a replacement unit, free of charge.
After filling a claim form, customers will be eligible for replacement. Devices with defect will be replaced within six weeks with a 90 day warranty. Customers with the personalized iPod nano devices will not get personalization on replacement devices.
