Click on the iPod icon. ITune's center pane will display information about the device, including how much data is used and what firmware is installed.
Click on the "Restore" button in this center pane. You will then be prompted to choose one of four different types of restores: The first restore re-installs the iPod Software version already on iPod. The second restore will use the older firmware, even though a newer software is available. The third and fourth option both use the latest iPod software available, but the fourth will update your old software rather than just replacing it.
Wait while the process takes place. A status bar will pop up in iTunes, and your iPod will display the "do not disconnect" message. It is very important that you do not attempt to unplug or operate your iPod during this time. The iPod will then display the Apple logo while the new software is installed. Make sure the iPod remains connected during the entirety of this process.
You may have a lot of music on your iPod Nano, but sometimes you need to start off with a clean slate. Whether you are trying to re-organize your music collection, or trying to troubleshoot a malfunctioning device, erasing your iPod Nano is a fairly simple process by performing what is known as a "factory reset." This basically means that your iPod will restore itself to the condition it was in when you bought it. All of your videos and songs will be erased.
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