touchscreen doesn't work properly what to do?

brapot5, you can go ahead and check the cable on your iPod Nano. From what I read in your question, it does sound like your digitizer has failed. I would suggest that you change it. the part is available right here and the instructions for it are here. Of course make sure that you clean all the contacts and connectors with isopropyl alcohol and do look for corrosion on the connector. You could also try a restore through iTunes and see if the will make a difference. hope this helps, good luck.