Next to the word Version is information that describes the software version installed.To see which version of the i Pod system software is installed on an i Pod nano or i Pod classic, choose Settings→General→About from the i Pod nano Home screen or Settings→About from the i Pod classic main menu.The utility is very simple to use and shouldn't take too much time in fixing your i Pod Shuffle.

It's fairly common for i Pod owners to have to restore their device to its factory settings because of issues with it.
This is an update for the Apple i Pod Shuffle Reset Utility and it will only work with i Pod Shuffle of the 1st and 2nd Generation.
If your version of i OS is current, the screen tells you so, and you don’t see those buttons.
To see which version of i OS is installed on your i Pod touch, choose Settings→General→About.
The seventh-generation i Pod nano was announced on September 12, 2012.
It introduced Bluetooth 4.0 support for compatible wireless headsets and heart-rate monitors.
Apple suggest using the utility when your i Pod can not play music, has stopped being recognized by i Tunes or is identified as either a device in "Recovery Mode" or a "USB DFU Device".
If you're having issues with either a 1st or 2nd generation i Pod Shuffle than this utility should work a charm to restore it to its factory settings.
We’ll post the full changelog as soon as Apple publishes details about this update.