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Must be a hardware problem. Sounds like the "up" key is stuck. Maybe it's just a bit of dirt that found its way into the device (the nav bar is particularly weak against dirt - and the plastic rim around it prevents dirt from going any other way than in). You could try holding it upside down and wiggle the bar around a bit, see if that helps.
Another possibility is if you have a leather case that does not quite fit this reader, and it keeps pressing the arrow keys in the lower right corner of the keyboard.
But most likely you'll just have to talk to iriver service for a repair/replacement.
You could open it up yourself but no sense in losing warranty over this.
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