I had the same problem that the ipod would onl play when I pulled it forward in the dock. Looking closely, I saw that some of the pins on the left hand side of the connector were bent forward, so I bent them back with a needle:
(ie. pushing the pins to the right, as shown here). This solved the problem for me.
If your connector is too far gone, I suggest looking to:
http://www.chargeconverter.com/shop/connector.htm
for a new connector for £3-4 or
http://www.chargeconverter.com/shop/connector.htm
for a whole PCB (Printed Circuit Board) replacement for £10-15.
Hope this helps...
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