Steph - a site that uses a trademarked name is no good. Only apple can use the ipod nano name. Good thing your debit card called. You could try to dispute the charge based on a fraudulent practice but i'm not sure you would get your money back...
You could think about writing your own review for them also. http://www.sitejabber.com/review-website-report-fraud#ipodsnanosales.com
