My iPod was perfectly fine until one day it wouldn't turn on past the Apple logo. I charged it but its still the same. I've also tried holding down the home and sleep buttons but that didn't bring me further than the Apple logo either. Help!
start your computer, go into itunes. dont have your cable connected yet. hold center button and power button for 30 seconds or until you see a usb cabel with an arrow pointing towards an itunes logo. now hook it up to your computer. itunes will say it is now in recovery mode and you will have to restore it. hit restore, it will download the software and restart your itouch. i just did it to my 2nd gen. i had the same problem you had