Hi All,
So its 7 hours since my last post to this thread in hopes to find a solution and the best I found was on YouTube by CNET. They do suggest this rubbing a alcohol liquid as a solution among other options before sending away before repair. Please see vid; http://www.youtube.com/watch?v=yBfhCmq9VkA (I am in no way endorsing CNET by doing this, it was the best video explanation for a fix).
I am posting this because these options are for out of waranty devices and are demonstrated in software and hardware issues before sending away. There are other options available, just search around this comunity or this video. But trust me when I say these are the best options because I have just spent the last 11 hours trying to fix this 'sticky/unresponsive home button issue'.
While searching outside this community I sat here doing this threads suggestion of alcohol for about 3hours and have started to get a response. So my second hand iPod was owned by someone very dirty and I have the pics of people living in a not so clean surroundings to proove it... hint remove your data when selling your tech. In the mean time I am using the suggested software home button while working-out the gunk under the button and hopefully start saving the bucket load of money I may need to get it fixed or buy a better one (not new though!).
Lastly, If your device is under warranty, USE IT. Don't be a fool and try anything, I did watch some vid's about the hardware cleaning to fix this problem and it is completely worth it. USE YOUR WARRANTY. Check your documents and call Apple for the double check for warranty services.
I know this is alot to read but it's the most comprehensive answer you'll probably get and I hope it helps. Thank you. 🙂
(It's 2:40am, I am so tired, 😐 lol. Good Luck)