For some Ipod nano's 1st generation, it turns out that there might be a defect in the battery where it could overheat and catch on fire. You can send it in for a replacement. I did and got a 6th generation as a repalcement to my old 1st gen nano. You can see if you qualify and start the replacement from this site. Free shipping both ways.
Apple - Support - iPod nano Replacement Program









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