This happened to me, I just got one, and I had to format it. You lose the demo videos and music and all that, but you just have to add all the stuff you want back on. My problem now is that mine wont even turn on. I plug it in to the computer and nothing happens, even just turning it on regularly. Even if I try to charge it, it says on the charger that is already full. I don't know, I'm about to give up.
Sebastian, July 2007