OK. I have one of those gray spots. In fact, I had two, a large one (about the size of a penny) and a tiny one. They appeared after my 5 year old daughter sneaked a while with the ipod. I had accepted she should have hit the screen an so it was a dead spot. I could keep using te ipod, so I did nothing. Yet, after a few months, the small spot disappeared. So, the screen spot wasn't really a dead spot. It came back to live. Now, a month later, the large spot started to move on its own. It has moved almost a quarter of an inch. That is, a good part of the screen that I had assumed dead is now working perfectly well (I can now see the battery status, which I couldn't with the original spot location). Unfortunately, it is moving towards the center of the screen, rather than outwards, as I would like it to. I wonder if someone had seen this before, and whether there is a way to make it move the way I would like it to? It actually seems to be moving downwards, since te ipod is mostly standing on a charging cradle.