OK, Apple's iPod Nanos aren't exploding, but they are catching fire. Watch a report on how this man's iPod caught fire in his pants pocket here. To see a gallery of toasted iPods, click here.

In rare cases the lithium-ion batteries in first-generation Nanos sold between September 2005 and December 2006 can overheat. Sounds kinda like the flaming Dell laptops, remember those?

Apparently poor old Danny Williams and his burnt pants didn't get much attention from Apple, but after the Japanese government reported that two iPods overheated there, the company acknowledged the problem.

The Consumerist Web site is suggesting the following marketing strategy: "Return Exploded iPod, Get 1 Free!"