In Japan an iPod Nano [the older version] caused fire damage to bedrooms and explode across floors. I personally would like to see an exploding iPod, but for the Japan Trade and economy ministry has issued a strong warning to Apple for failing to report the incident when it occured.

According to the Yahoo News, the nano’s lithium ion battery was the main culprit of the problem, and other companies like SONY, Dell and Lenovo had similar problems with their Lithium ion battery that resulted in a recall.

[link Yahoo News engadget]
http://www.engadget.com/2008/03/12/japan-orders-apple-to-investigate-exploding-ipod-nanos/