Click wheel totally inoperable.
My ipod nano 3rd gen will power on and respond to the hold button. I have reset it from the computer but it will not reset from the scroll wheel no matter what I do. Everything except the scroll wheel seems to be fine so I sent it off to get it get it looked at at a recommended website thinking it shouldn't cost much since I thought it would just be the scroll wheel. They said it would be $150 and that it needed a new logic and face plate. I was quite surprised at both since its face plate was fine and I figured the logic board was fine too since only the scroll wheel seems to not work. Does it sound like the scroll wheel is the only problem and the site was just trying to make some $, or should I replace it all?
From what you've told us I would bet on just needing a new click wheel. That being said, perhaps the company saw something like a broken connector on the logic board. I would get the iPod back and inspect it myself if I were you. If there is no visible damage to any of the connectors or the logic board, try replacing just the click wheel. These things go on ebay for less then $10, not a horrible gamble in my opinion.
Use our handy logic board guide to remove the board and do inspection. I THINK the click wheel should be easy to remove if you do this guide, but if you get stuck don't hesitate to ask for help! Good luck and let us know what happens.