From Neil Sardesai | Feb 05, 2007
Once you are in the regular menu of the iPod, press and hold down the menu and center buttons. The iPod will restart and the moment you see the apple logo, press and hold the rewind and center buttons.
You will be taken to the diag boot area. Press the menu button and you will be taken to the diagnostics menu.
Have a look around and when you want to return back to the regular ipod menu, click on reset.
WARNING: only change a setting IF YOU KNOW FOR SURE WHAT YOU ARE DOING.
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