iTouch always wants to turn off

Today my iTouch 16GB 2nd gen started acting weird.

First, I couldnt get it to turn on, so I plugged it in to my PC then it went on. Then the volume icon stays in the center of my screen, i try to clear it, but the volume keeps going up. but the up button for the volume is not stuck, I can still de-press it.

Then after a little while, the shut off screen shows up (Slide the red thing to the right to turn off.), so i cancel that, but it comes back up. This lead me to believe that the wake/sleep button was sticking, but that too can be depressed as well.

has anyone ever seen this before? I am thinking of taking it back tomorrow, but another question I have is if i get a new ipod, with my iTunes on the PC left as it is, will I have to redo all my music onto the new iPod?....cuz that would suck indeed...I dont care about apps, but redoing about 4GB of music is painful...

can anyone help with this?