There have been plenty of recalls and stories about laptop and cell phone batteries (think Sony --- ouch, and Nokia, recently) either overheating or igniting, but we've never heard of an MP3 player doing this before.
Danny Williams says his 1 1/2 year old iPod nano caught fire in his
pocket. A local TV station caught the news, and posted a rather
There's a full news video at the linked site. Hilariously, the news anchor calls the nano a "nana" (channeling her grandmother?). The statement made by Williams' mother makes one wonder how long it will be before a lawsuit is filed.