Ron, I would try to restore it first through iTunes. Also, of course, make sure that all your files a backed up. Instructions from here
1. Make sure you’ve installed the latest version of iTunes.
2. Open iTunes, and then connect your iPod to your computer.
3. After a few moments, it will appear in the Source pane in iTunes.
4. Select your iPod in the Source pane and you will see information about it appear in the Summary tab of the main iTunes window.
5. Click the Restore button. A window will appear asking "Are you sure you want to restore the iPod "iPod" to its factory settings? All of your songs and other data will be erased."
6. Click Restore again. (If you're on a Mac, you'll then need to type in your password.)
7. During stage 1 of the restore, a progress bar will appear on the computer screen indicating that the first stage of the restore process has started. When this stage is completed, iTunes will instruct you to leave iPod connected to your computer to complete restore.
8. During the stage 2 of the restore process, the iPod will show an Apple logo as well as a progress bar at the bottom of the display. It is critical that the iPod remains connected to the computer or iPod Power adapter during this stage. Note: The progress bar may be difficult to see since the backlight on the iPod display may be off.
9. After stage 2 of the restore process is complete and the iPod is connected to the computer, the iTunes Setup Assistant window will appear asking you to name your iPod and choose your syncing preferences similar to when you connected your iPod for the first time.
If that has not resolved your issue, take a look at the click wheel connector on the logic board and make sure it is connected straight and that the retaining clip is down. Should that be in working order, you might consider to replace the click wheel. Not very expensive and not a to hard a job to do. Also, when you have the click wheel removed, check that the little rubber bumpers are on the switches on the logic board beneath the click wheel. Anyhow , give it a try and let us know what happens. Good Luck.
iPod 5th Generation (Video) Click Wheel Replacement