In the first year after purchase, the iPod is covered by Apple's warranty. I will copy the parts of Apple's warranty statement that are relevant to answering your question.

What is covered:

"Apple...warrants this hardware product against defects in materials and workmanship under normal use for a period of ONE (1) YEAR from the date of retail purchase by the original end-user purchaser."

What is not covered:

"This warranty does not apply: (a) to consumable parts, such as batteries, unless damage has occurred due to a defect in materials and workmanship; (b) to cosmetic damage, including but not limited to scratches, dents, and broken plastic on ports; (c) to damage caused by use with non-Apple products; (d) to damage caused by accident, abuse, misuse, liquid spill or submersion, flood, fire, earthquake or other external causes; (e) to damage caused by operating the product outside the permitted or intended uses described by Apple; (f) to damage caused by service (including upgrades and expansions) performed by anyone who is not a representative of Apple or an Apple Authorized Service Provider (“AASP”); (g) to a product or part that has been modified to alter functionality or capability without the written permission of Apple; or (h ) if any Apple serial number has been removed or defaced."

Theft isn't mentioned... but I don't think it should be necessary to tell you that no manufacturer's warranty will ever cover theft of the product.