iPods have no traditional on/ff switch. They power up with the slightest touch, making turning the iPod on as simple as touching the menu. Turning the iPod off, however, can be more tricky. Waiting for automatic shut off wastes battery life, and surfing the menus yields no way to stop the device from running. Luckily, turning off the iPod Nano is almost as simple as turning it on.

Although, here's how to turn off your iPod Nano:

1. Locate the "hold" or "lock" switch at the top of your iPod Nano. It will be located on the top of your device on the left side. Make sure the device is unlocked. When the device is locked, an orange bar is visible. When it is unlocked, that bar is not visible. The iPod needs to be unlocked in order to power off.

2. Locate the "play/pause" buttons. These are located at the bottom of the control wheel. Press at the "play/pause" section of the wheel and hold for a few seconds. Your iPod will power off. Do not touch the wheel again after powering off, as this will power the device back on.

3. ocate the "hold" or "lock" switch again. Slide the bar to the locked position so that the orange bar is visible. This will prevent your iPod from powering on in your purse or pocket and wasting battery time.
Source(s):
http://www.ehow.com/how_4743521_turn-ipod-nano-off.html

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You could always remove the battery from the device. It would be off for sure then.
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If you plan not to use your iPod for a while and want to store it, you can make sure that you conserve battery power and keep your iPod from playing a concert to the inside of your backpack by engaging the hold switch.

The hold switch is at the top of the iPod nano. Slide the hold switch to the on position when you put the iPod away. This will lock the clickwheel the same way you lock a cell phone keypad. Now, your iPod won’t accidentally wake from sleep when a button is pushed and drain its power. To start using your iPod again, just slide the hold switch into the other position and click a button to start it up again.
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In the follow article, the individual claims the iPod Battery show a 25% drop in battery charge after turning it off four hours. The individual claims the drop is not actual and iPod is probably fine.

1. Every time you charge your iPod your meter can potentially get further out of calibration

2. A second check for battery depletion problems is to check your alarm clock. If an alarm clock is going off this can cause a power drain.

3. The battery has a maximum recharge/discharge cycle count. After the maximum cycle count the battery may not be able to hold a charge.

4. The sleep mode on your iPod should not run down your battery.
Source(s):
http://www.theipodbatteryunplugged.com/

http://www.ipodjuice.com/

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