iPod Click wheel only works after I turn hold switch on and off, iPod Nano 5G

The click wheel on my iPod Nano 5th Generation is acting a little weird. If i'm using it, and it's on, all is good. But as soon as it has been asleep, if I push the click wheel, the screen turns on, but then the click wheel is unresponsive. If I turn the hold button on and then off, the click wheel magically comes back to life and works for as long as the iPod is on, but once it sleeps, the process starts all over. Any ideas or suggestions? I have just done a restore to the newest iPod OS and it still happens.