I have the same problem with my ipod nano. Could anyone help us? Thanks

Here this gives some more hints:

http://www.rbarrios.com/projects/NANO6BU...

I tried it, got the button back to press the mico-switch. But it still doesn't work. No effect when I now press it. Not sure how the electrical setup works as I don't understand where the micro-switch needs to be connected to.

Yes it can!!!! I'm amazed. I'm no techie and have no experience with electronics repair and I was able to fix my stuck volume button. I opened the ipod up, removed the battery, and all the sticky tape that was in my way and necessary screws. There was a little (pinhead sized) black rubber(???) circle that was suppose to be stuck in the center of the copper colored volume button that had come lose. I used a little glue stick glue to put in back in place. I'm not sure if I will need to redo this with better glue, I just used what I had. Put everything back together and it works!!! The volume button and everything else. The only problem is that the glue is not as strong as it was and the screen is loose. I'm going to see what I can find to glue it back in place.