Battery Display not accurate?

well one thing that could be happening is what i fell for also at first...

When the battery drains, the dark grey bars go down to 3 then 2 then 1, and the bars that were once full, then become a lighter grey colour to mean empty

following me so far?

Well if you have your contrast turned up to high (to far to the right), then those light grey bars which once were dark grey full bars, will also appear just as dark as they were when they were full... So infact, it is draining, and the bars are going down, but your contrast is up so high that it looks like their all constantly full even though you get the battery low warning...

try turning your contrast down to about 90% to the left on the contrast bar

however, im not sure why your ipod drained all its batteries just in on your morning commute... that doesnt sound right... are you sure that you didnt accidently leave it playing all night?

if its draining the battery after only one or 2 hours. then i'd get that puppy checked out with apple