You must consider the financial aspects when working with a deal like this. Microsoft may want to go in on the deal with News Corp. to spread the risk out. For example, if they really just wanted a 5/7th Myspace, there is no company that matches that profile 100%, so they can split it with News...
I had this same exact issue with my apple ipod (although it was a 4th gen). I had to open the ipod, disconnect the power, let it lay for a few minutes and reconnect the power. This fixed the problem, although temporarily because i eventually ended up replacing the ipod in it's entirety due to...
wow...simply amazing...i literally registered just so i could tell you it's looking great, and that i check these forums for an update on this case 3-4 times a day. I'm just amazed!