4th Generation iPod Touch Differences

I think you may have turned on the Zoom or Large Text feature. Head over to Settings > General > Accessibility. turn zoom off in there, or Large Text.

To answer that question, you need to contact the Boston company's technical support department.

There was an issue some time ago when Apple rolled out iOS 4 and several third-party iPod interfaces designed for iOS 3, notably those of Volvo car stereos, could no longer work correctly with the new version of iOS. Apple changed the specification for interfacing, in an undocumented way with no advance warning, and certain devices were effectively rendered incompatible if the customers with devices running iOS 3 innocently updated to iOS 4. This was a rotten outcome for consumers, as there was no way to revert to iOS 3 short of jailbreaking and a difficult downgrading procedure, which Apple would certainly not support.

Your new iPod runs iOS 5. If you have an older model Boston dock, designed for iOS 3, perhaps this is related to that problem. Hopefully the Boston company can explain to you what the situation is and what can be done about it.