OK guys and gals lets find the diagnostic mode. you know the test screen where there is bound to be all sorts of goodies. Ok i have found that running version 1.1.1 that upon start up holdind the wake/sleep button and the home button the ipods screen will flash white this may be the key the ipod will do this multiple times (it seems the flash starts the boot up process again). so if you could just please investigate this we may find it there are reports of bluetooth being dissabled yet physically present in the ipod itself. please report any findings back here. thank you.