This is more of an FYI since there is nothing (to date and known to me) that as users we can do about it. I did not find a post about this in the forum, and decided to create a new thread for the benefit of the next person that comes across the same problem. My iPod recently and spontaneously, started displaying a rainbow effect covering the entire screen. It seemed as if you have placed a magnet on an old TV screen (except that iPods have LCD screens). Surfed the web for answers and did not find anything quiet the same. I found similar issues but not as severe as my case and none offered a solution other than: live with it . Took it to the Apple store and the people there claimed that it was the first time they have seen something like this, and were not able to do anything about it. Luckily it was still under warranty and they exchanged it.