There's a small "loop" icon next to the progress bar when playing a tune. If it's set to loop, the icon is blue and will have a tiny number "1" on it. Just tap the icon until the number "1" disappears and you should be good to go.
ok try this...
Click on iPod, select a song (stay out of coverflow) as it plays click on the middle of the screen. On the left of the progress bar you'll see two arrows going in a circle. Click it until it's white.
If that don't work, reboot the phone and try again.
Reclean the surface & try again.
Make sure you're running the latest version of software from Apple, 1.01.
If all that fails you can try a restore.
And if all that fails after all that, you probably want to call Apple.