Before sending in an ipod for repair you need to first reset it and then restore it with the latest ipod software available (you can find it on the apple website). The software in the ipod also handles the battery some. If you still have problems with the battery/other functions in the ipod after that you can send it in. Remember that the battery life apple states is under perfect conditions. No EQ no backlight, aac 128 and no switching songs (hdd works more then and that shortens the battery life). To cold and to warm will also effect battery.
There are a few ways to do it depending on where you live. In Europe you have 3 options to arrange the repair. If you have a personalized ipod you should always set up a repair from the website or call apple otherwise you will get an unpersonalized ipod back.
1. Take it to an authorized service provider. Take your receipt with you otherwise they will not arrange the repair. If you have not done any troubleshooting on the ipod and they can solve it by resetting or restoring it they may charge you for it.
If you have done everything you will not be charged and turnaround for the repair is shorter if you take it in your self.
2. Set up a repair yourself using
http://depot.info.apple.com and apple will come and pick it up normaly within 2 working days. and then return a replacement ipod to you if it's broken. Otherwise you will get it in the same state. If you have a shuffle apple will send you a new one first and then you return the old one within 10 days using the envelope you received for this with the new ipod. Site for shuffle repair is
http://depot.info.apple.com/ipodshuffle
Time of repair depends if the ipod is personalized or not. An non personlized ipod turnaround should be between 5-10 working days while a personlized ipod can take a few weeks up to a month or more if you are unlucky. An ipod shuffle is much faster to get since they send you a new one directly.
3. Call apple to set up a repair and they will come and pick it up as in number 2. Be sure that you are within 90 days from purchase and remeber that you only have 1 incident you can call apple about the first 90 days. If you are after 90 days you can pay them for each incident or sign up for an applecare.
So my recommendation is to take it in to service your self or set it up from internet.
You battery life is not acceptable at all and if you are still under warrany and reset/restore don't help you should get it fixed.
