I think I found the problem - while the older multi-pin connectors fit the Touch they don't charge the touch. Nor does the older Firewire wall charger - it has to be the new multi-pin connector (USB) that comes with the touch. As soon as I plugged that cable into my touch and laptop - it started charging right away.
Thanks for your suggestion - it made me think of a few other options and hopefully I tripped on the solution.
I have a white icon on the touch. When I try to charge it on the iHome dock I see a white battery icon with a black plug on it. (Isn't that the "is is charged symbol)...