So after using my iPod for music at a party I disconnected it from the speakers and it went blank. It responded to nothing, not even the middle button + menu button thing.

When I came home and connected it to power (not a computer) and the Apple logo came up, it then said "connect to power" even though it already was. I disconnected it as I could see it had full battery but it went blank again. From then on it didn't display anything even when I connected it again.

I then connected it to my Macbook, it then said something about downloading recovery software and then said "iTunes needs to prepare your iPod for recovery. Please leave your iPod connected." I click continue and it says "preparing iPod for recovery...", it then loads it but brings me back to the previous notice about recovery... any ideas???

Its a 3rd gen iPod nano and its under a year old. Would I be able to return it if it is dead? keeping in mind that it is covered with scratches. 

Yes, it should be under warranty. Call Apple support and they'll give you options; if you didn't break it then they ought to fix it for free.

as long as you didn't physically break it, it should be under warranty.

I'm just hoping that it didn't get trodden on or something at the party, while I trust everyone who was there, it was quite a crazy atmosphere.

If Apple doesn't help you, PM me. Maybe I can help.

^^ thanks a lot mate.

I have a meeting arranged with the genius people in a couple of days so thats a start

Man that sucks.I has happened to me a couple of times.