Hey guys,
People with the old iPod Nanos should seriously consider sending their device back. Further details about the replacement process in this post: Apple recalls some of the world's first-generation iPod nano music player

Anyways, I sent my brothers old 2GB Nano back, expecting to get a refurbished one in return. Surprisingly there wasn't an older-generation device in the package but rather a brand new 8GB iPod nano. Apparently they must have run out of old devices. I have no idea how the situation is in the US, but I'm German and you might get lucky just like me.