Recent update performed now IPOD does not work properly.
I performed an update recently on IPOD touch and no it will not turn off, touch screen stopped working however music is playable.
iPod touch, iOS 6.0.1
Did you have modified software installed before you updated your device? If yes, this could be a reason for your problem.
If no, try to set it up as new device, explained in this article:
How to back up your data and set up as a new device
If your device is not recognized by iTunes, you might have to connect in recovery mode, explained here: