Things you should understand before replacing your iPod battery:
1. Apple has an official out-of-warranty battery replacement program for $59 + $6.95 shipping in the United States(see Europe and Canada pricing). The program requires that you send in your iPod (any model), and Apple will exchange the battery and deliver it to you for $59 plus handling and shipping. Technically, Apple in reality replaces your whole unit with an equivalent new model or factory-refurbished model in a brand new case, with its own 90-day service warranty; if it was previously engraved by Apple, it will be engraved over again.
2. The iPod warranty is one year but you can expand it for two years with AppleCare Protection Plan for iPod. Various retailers have inexpensive extended warranty coverage available and often these programs merely exchange the product with a corresponding new unit.
3. Over time, the battery will not hold the same quantity of charge as when it was newly bought. This is common, and exists to all lithium ion batteries. This continued degradation will not affect, or be discovered by, most users during the life of their iPod. %Nevertheless%, based on usage, environmental factors, and many other variables, some heavy users may realize a great degradation than others. It is crucial to know that this is the exact same degradation that would happen with any lithium ion battery used in any laptop, cell phone, portable music player, etc.
4. The iPod's cover is not designed to be opened, so, in that respect, it's not what would generally be referred to as "user-replaceable". Nevertheless, with the proper set of tools you can exchange the iPod battery yourself and avoid all the trouble by going through Apple.
Instructions:
Step 1 - Purchase an iPod battery online or in a retail store nearest you. iPod batteries sells for as low as $11. You have to be certain that the replacement battery you buy is for your iPod.
Step 2 - Turn off your iPod and set the hold button to the on position. Get a flathead screwdriver, as thin as possible but oftentimes the online store that sends you the battery will give you a tool. In any case, you must open the unit by putting the tool or screwdriver between the plastic and the metal. Once you feel a clip, pry it ever so gently. Keep going around the iPod, unfolding each latch.
Step 3 - You are going to have to employ that tool or screwdriver again to extract the battery from the hard drive. Once removed, unplug it from the board.
Step 4 - Connect in the newly bought battery to the board of the iPod (where you unplugged the old battery) and set it on the glue that remained on the hard drive. Make sure that the battery and the wires are set right so you can actually close the iPod. Snap the cover back together, you'll hear it when it's finished!
Step 5 - Switch on and charge the device. That's it and your iPod battery is successfully replaced.