Formatting seems to have fixed the problem, I was pretty sure it was hacked but it wasnt a bad price even for a 1gb player, the screen quality is excellent and now it does play .amv files.
I might try to also get some money back from the seller as he still claimed it was 8gb.
My old 512mb nano clone can now be turned into a video playing christmas or birthday card, like I did with the last one

(plays a video I have made on opening and/or pressing a button)