Stereo to Mono help!!

No, if it's your audio jack then you cant fix it. It is just the software not the headphones that makes it mono.

I have no idea what you just wrote, but generally speaking, two (usually black) bands on the jack = stereo. (Technically, those two bands split it into three channels, generally known as tip, ring, and sleeve. Two conduct audio signals while the third usually acts as a ground and helps keep noise interference out.)
If the jack has only one band on it (Tip/Sleeve), it's mono.

The actual audio files may also be mono, but mp3 players will typically play the single audio channel through both speakers (unless the track is in fact stereo, but only one channel is used... which would usually be stupid).

Make sure the jack is firmly pushed into the socket. If it's not all the way in, one channel might be sent through the wrong wire, and others will be missing. This is NOT likely to be harmful, but certainly undesirable.

I'm also reading about some TRRS (Tip/Ring/Ring/Sleeve) connectors for newer iPhones and Androids -- I don't have any experience with them, but it sounds like they just add a fourth channel for a mic.

Try Turning the headphones around a couple times.. Sometimes there is a bad connection/sector on one of the rings. If that doesn't work there really is nothing to do but replace the jack inside. Which, Means voiding your warranty if you have one, and possibly breaking it further. But, you can always try if your willing to risk it. there should be youtube tutorials or tutorials on the internet for the Ipod 1st gen disassembley and fixing. the problem you are going to have is finding another jack. Might just be better to buy a another working Ipod 1st gen.