The first generation of iPod nano models may have been small and sleek, but they also apparently had an image problem -- mainly, that it rapidly grew difficult to see the screen after the nicks and scratches began to accumulate on the face of the player. As far back as 2005, users expressed their displeasure over the nano's likelihood for damage, including cracks in the screen in some cases.
Thanks to a now-settled class action lawsuit, nano owners who experienced the scratchies can apply for a refund of $15 (if the iPod shipped with a slip case, as later ones did) or $25 (for no-case shipments). You can get all the details from the settlement website. Refunds may take up to a year (!) to arrive.