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1 Yes, the 20Gb iPod holds five times the songs, but the nano is five times smaller physically.
2 Yes, screen problems (scratching) have been reported anecdotally in the US with the nano. No-one I know with a nano has seen this yet. On the other hand, there is also anecdotal evidence to say that the nano itself is extremely difficult to damage.
3 Yes, you can send either iPod to have a battery replaced, however you can do the job easily yourself for a fraction of the cost Apple charges. They both use Li-Ion batteries, as does every other DAP on the market, so the concern is not unique.
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