red area by switch

If you are seeing the orange bit, then your iPod is on hold. Of course, you could always try pushing some of the buttons. Make sure the iPod has a charge, and press any of the buttons. If you get an apple logo, then you are not on hold. If you get nothing, then your iPod is either on hold, or there is something more sinister going on with your iPod. But, as i previously mentioned, if you are seeing the orange bit, then the hold switch is in the hold position.