There is a new place on Pedro Clisante, Sosua across the road from th Jolly Roger bar in the little square. They have an A board outside saying they repair computers, ipods and laptops etc, I dont know how good they are.
If your Ipod is under warranty, and you're around Cabarete, check in Plaza Media Luna right next to Caribe Express. I asked about fixing my Mac and they told me they would take care to send it to the Apple Store in Santo Domingo. They may do the same for your Ipod.