ColorEnvy.com is a company that provides scratch repair and custom paintjobs for your iPod(s), so it's only natural for them to have launched a contest to find the "worst scratched iPod." The winner of the contest will have their iPod's scratches fixed by ColorEnvy and painted the color of his/her choosing. He/she will also receive an do-it-yourself scratch repair kit to keep the iPod looking new and scratch-free.
If you think you've got the world's worst-scratched iPod, send them a picture. The contest ends August 1st. My bet is that an iPod nano wins the contest. Heh.