iPod Nano 4G Clickwheel problem

[freebooter]

The clickwheel on my 1 week old Nano 16GB 4g has just stopped working.
I can stop/start/pause, etc. but I can't scroll, change the volume or anything else that requires the circular motion. I tried the reset and restore options, but that didn't help.
Any suggestions before I return the dud tomorrow?

 

[DanielJvdBerg]

You restored the software so I guess it's a hardware issue, return it to the store!

 

[freebooter]

This morning it worked again, but the problem reoccurred after a while. Back it goes.
I think I'll get my money back since I prefer my 3g Nano, overall. I will miss the extra capacity on my upcoming holiday, though....
This is the first (of 10 or so) Apple product I have had to return or service.