Hi,
Is it really a Head phone issue? lets find out that first.
If your headphones don't work as expected or not at all, connect the headphones to another audio source, such as your computer's speaker jack or another audio device that has a 3.5 mm stereo headphone jack, and test them. If your headphones are under warranty and still don't work, you can
order replacement iPod headphones - Link -
https://selfsolve.apple.com/GetWarranty.do;jsessionid=1B9ED1B556F0978A6C914A52711E59AA
And about the yellow and green LEDs
The yellow LED shows when the player is charging and a blinking green LED indicates you've paused the player.
At the back is another LED, the 'Battery Status' button, just below the toggle switch; when pressed, it flashes to give you a general idea of how much battery charge remains... green indicates a full charge... yellow, a low charge... red, very low charge... and no glow means its given up its ghost.
Hope this helps :-))
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