Apple Computer has formally acknowledged that the screens on some of its new iPod nano units are prone to scratching and cracking.  The company has agreed to replace units with a cracked screen free of charge.  
Several customers found that the screens of their brand new iPod nano MP3 players were cracking and scratching easily. According to Tyler Hall the creator of http://www.nanoscratch.com, his iPod nano was scratched within 30 minutes of use in the pocket of his shirt. He posted his concerns to the Apple support forums, but his post was deleted.  He created www.nanoscratch.com to allow other users to post comments on the iPod’s “scratchability” and post photos of scratched iPods. 
"This is a real but minor issue that involved a vendor quality problem in a small number of units," said Apple spokesperson Tom Neumayr. Apple estimates that these issues affected less then 0.01% of the total iPod Nanos shipped.
In most individual cases Apple has been telling customers that the scratches and cracks were covered under warranty. Standard warranties on most electronic products do not normally cover cosmetic damage such as scratches or accidental damage such as cracks. Users with a cracked screen can now contact Apple for a free replacement.

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Apple agrees to replace iPod nanos with cracked screens