My ipod nano's click wheel randomly moves!

Since I updated my ipod nano last night, after about a minute of it being turned on, the click wheel starts not to respond to my actions and randomly moves, this problem occurs on many menu's such as volume, selecting songs to listen to, games, and many more. I have tried resetting it, getting rid of the songs i added to it last night, recharging the battery, but with no luck. Please help; as I’m worried it could be a virus!
Compaq   Windows XP  


Is the Hold button on or off?
Since resetting was a temporary fix, go to the Apple store. The staff there will let you know if you need a replacement or not as the iPod Nano is still under warranty.