I have a 4th generation iPod touch that is about almost 2 years old. I've never dropped it on a hard surface like concrete or hardwood floors, just a few times on my carpet. It's never been scratched, never had water damage or anything like that. It's in pretty good condition, and runs pretty smoothly, except my home button doesn't work!
I know several people with the same iPod who have similar problems - their home button doesn't work. When I'm in an app, like the Music app, and I hit the home button to get back to my home screen, it doesn't work.
I've looked it up on the internet - I've seen several videos on YouTube (like turning the iPod off, entering an original app like Weather or Notes and then holding the lock button down until the "slide to power off" button came up, and then holding the home button down until it went away to 'calibrate' the home button, and locking my iPod and then clicking the lock screen and home button at the same time - which worked for me a few times, but after like a day or two, the button stopped working) and I've also Googled it and heard that rubbing alcohol on a q-tip would clean any gunk out from underneath the home button. I've never tried the alcohol one out of fear that I'd really ruin the button.
I've also read that there might be dust under there or gunk that should be cleaned by a professional...
But my dad says that it's too tight of an area around the button for anything to get lodged under there. I am currently updating the iPod to iO5 or whatever the new update is to see if it makes any difference.
I'm just trying this forum as a last result to see if there is anyone out there with a similar problem that has fixed it themselves to quell the problem permanently. If not, then I suppose I'll be forced to take it to the Apple Store and see if they can fix it.
I did have the 1 year warranty, but alas, I did not start having these problems until recently.