i'll be calling the apple service providers at eServ @ Wheelock tomorrow to ask them about this issue...
i called. Go to the service centre and send in your nano. 6 weeks to replace battery.
They are going to pass you back the same 1st gen nano with battery replaced.
... my 1st gen was scratch like no tml.
If you have a personalized iPod nano, you will receive a non-personalized replacement.
hmmmmm........