are you playing playlists with more than one album in them? because otherwise album shuffle (of course) will not work. and, like I told you in your other post, you must not use the shuffle option from the menus but rather the shuffle option in the while-playing-screen.
if you're doing all this it should work fine. at least it does for me.
I have probably 15 play lists in iTunes-Electronica, trance, jazz, etc.
Loaded all playlists to the touch.
Then, I choose any playlist-they all have more than 1 CD-and the touch lists the songs alphabetically with no regard to which CD they came from.
I choose the first "A" lettered song-it starts, I then tap the album art, and choose shuffle.
The touch shuffles songs from whatever CD the currently playing song came from. After it has shuffled ALL SONGS from that CD-it stops.
So, it does not play the CD all the way through-it shuffles within the CD-and-it doesn't choose a new CD once all the songs are played.
I thank you for your help-I am sure this issue is operator error-though I must admit it is much more difficult than on my 5.5G video 
Jack

Okay,
first I chose a playlist-and a song (in this case it is Country SORRY 
Chose "ticks" from Brad Paisley's 5th Gear CD-song starts, and then I tap album art and then shuffle-it shows 1 of 284 playing. I fast forwarded to 25 seconds left-let it finish the song, and then next song is a Garth Brooks song from a different CD.
Shuffle Icon is blue-indicating it is shuffling-and song number went to 2 of 284.
I restarted the TICKS song again, and then tapped the shuffle button to OFF, and the number changed from 1 of 284 to 6 of 284. This time I fast forwarded to the end and it played the next song on the CD-which is #3 on the CD and the counter changed to 7 of 284.
So then I forward to the LAST SONG on the CD-and the counter changed to 18 of 18 and quit playing after that.
If I just choose the first song on the playlist, it plays the song sin ALBUM order,by albun name-even though it is set to shuffle albums.
Is it possible to downgrade firmware? Would I WANT to do this?
Jack
Damn, I had it working ONCE-and now it isn't again... I am trying to recreate what I did!
Okay, I think I got it-after choosing the album art-the shuffle button is lit-I touch it twice (turn it off and then back on) and then it seems to work. It finishes the CD it is on and then goes to a random CD.
One thing I noticed is if you accidentally set the player to shuffle songs, it changes the "master setting" back to shuffle songs...
So-is there anyway to do this for ALL cds, not just a play list? Or-I guess I could make one HUGE playlist with all my songs in it?
Thanks for taking your time to help me with this!
Jack
Would you recommend downgrading firmware? Is it even possible and are there any advantages to doing so?
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Has anyone been able to successfully get their touch to shuffle albums?
I have applied the new preferences discussed elsewhere here. I am able to change to numeric battery, numeric Wi-Fi, and I see all the other options discussed in the extended preferences.
However, I can't get the touch to shuffle albums. I want the touch to play through an entire CD and then choose another at random. I have only been successful in getting it to shuffle songs one-at-a-time or shuffle songs within any ONE CD-but for whatever reason, it will not shuffle entire CDs.
I am REALLY NEW to the touch, so I am pretty sure it is operator error.
If you have gotten this to work-please enlighten this n00b.
Thanks!
Jack