No, when i move it nothing happens. On screen it still shows the little lock to say that hold is on
(and before you start wondering, i only see the menu with the little lock because it comes on when you plug it in. I, of course, can't turn it on with the hold switch messed up)
It could be defective then. Try turning the hold switch to the off position (so you don't see any red coloring on the switch) and then try the reset I recommended. If it doesn't reset then it is probably a hardware problem with the switch.
Otherwise, if you live near an apple store, feel free to sign up for a genius bar appointment on their website (apple.com/retail). The appointments are free and they could tell you for sure what the problem is.
