If your iPod is stuck on hold what do you do I already tried to 'restore it' with no luck. Also I can move the switch but the 'lock' does not go away. Help?

Usually, when an iPod is stuck in "hold," that's a hardware failure in the switch itself. If it's still under warranty, contact Apple (or take it to an Apple store) to arrange for a replacement. If it's not under warranty any more, you can take it to an Apple store and they'll give you a discount on a new iPod if you trade yours in.

Otherwise, you may be able to have one of the companies in the links below repair the switch for you for less than the price of a new iPod. Good luck.

I can confirm that on my old IPOD 2GB nano, holding center button and Menu button simultaneously for 6-8 seconds solved this problem.

i tried that it still does not work!!