Anyone have problems with newer generation iPods?

I just got a new iPod Nano (G3) as a replacement for a second generation one, and so far I'm nowhere near as impressed with it as I was with the second gen.

The new menus with the giant album art next to the song name are not very appeasing and it seems to lag noticeably when moving in between the menus. Furthermore, the touch wheel is very sensitive, sometimes bumping down to the next song when I try to make a selection. But what's really annoying me is how many times it freezes. In all seriousness, its probably frozen more in the three days that I've had it than my old one did in one and a half years of ownership. It's been freezing just about every time I plug it into the computer, and sometimes when it's just repeating the song. As I had/have total confidence in apple, these problems come as a bit of a surprise.

So my question is, did I just get a lemon, or are most iPod G3 Nanos, or even all newer iPods, acting this way?