and then, while attempting to reset, the n+i menu appeared on my screen. further investigating revealed that by squeezing hard on the base of the nano where the receiver plugs in, the n+i receiver would connect and function. release pressure and it would stop. my suspicion is that the contacts are not connecting well. the apple store demo unit seemed to work better at this than mine, possibly because mine has been used more (inserted and removed regularly for a few weeks). unfortunately, the kit still still does not function under normal circumstances.
there are posts online that others have experienced a
with their units. i suggest trying the squeeze diagnosis and letting us know if you have the same results. if so, i believe it is up to apple to fix a poorly designed product...
(click each for closeup view of the dock connectors)