iPhones, iPods, and iPads forum: ipod nano 1st gen freezes after sleep

I have an ipod Nano 1st gen that was working great until it got a little wet, I didnt notice it, so its performance degraded over a week before it just about ceased functioning. So I opened it up (I put in a new battery 6 months ago), dried it and it began to play only in my charging station, because the battery would not charge. After drying another week, the battery was now charging, the nano was playing normally, but, when paused, if it went to sleep after a few minutes, it would not resume playing when woken up.

It would say it was playing, showing the play icon in the upper left, but the time ticker would not budge.

A reset (Menu Select pressed simultaneously) makes it work again, but only until the next time you stop play and the screen goes dark into sleep/off. When you wake it up, it wont play. Ive upgraded the firmware to 1.3.1 and tried a couple of Restores. I just upgraded from Itunes 6 to 7.7.1 on my PowerBook G4 running OS 10.4.11 Anything else I can do to get my nano to play like normal again? Thank you for your help.