Exchange Your Unit if Possible
My first Touch (16GB 2nd Gen) had a faulty headphone jack. It would crackle in your ear whenever the plug moved at all in the jack, even twisting slightly. Also, the plug wouldn't feel secure in the jack; it just felt "wrong". Returned unit to point of purchase on Day 3 and exchanged for another new unit which is completely different in every aspect that I mentioned. This one's a keeper. 🙂