Okay, so im not sure if this is the correct area to post this but i need help.
Recently my Zune which was made from Microsoft, has a error. The back button has failed to work. I cant even reset the device or anything. I searched the internet and many people have had problems with there zune's back button not even working at all. What could be the possible reason how this occurred? Or at least how would you fix this?

Since it's Microsoft made you can't fix it, that would void all varranties etc. Try taking it back to the store you bought it from and see what they say and/or contact Microsoft support.