Help recover my disabled Ipod touch please (with a broken home button)

Did you have Find My iPod enabled in the iCloud settings?

Use Find My iPhone

If you enabled Find My iPhone, you can use it to erase your device.

1. Go to icloud.com/#find to see if you enabled Find My iPhone.
2. Click All Devices at the top of your browser window.
3. Select your device and click "Erase [device]" to erase your device and its passcode.
4. Use the Setup Assistant on your device to restore the most recent backup of your device.

Forgotten Passcode or device disabled after entering wrong passcode

Correct. That is why I asked.

It needed to be enabled before the device was disabled.

I assume it was not.

Unfortunately, without a functioning Home button you cannot force it into Recovery mode and therefore cannot restore the device.

You can give it a try nonetheless:

Use recovery mode

Follow these steps if you never synced your device with iTunes, if you don't have Find My iPhone set up, or if you can't get to your own computer. You'll need to put your device in recovery mode to erase the device and its passcode. Then you'll restore your device.

1. Disconnect all cables from your device.
2. Turn off your device.
3. Press and hold the Home button. While holding the Home button, connect your device to iTunes. If your device doesn't turn on automatically, turn it on.
4. Continue holding the Home button until you see the Connect to iTunes screen.
5. iTunes will alert you that it has detected a device in recovery mode. Click OK, then restore the device.

If the faulty Home button prevents you from putting it into Recovery Mode you will need to make a Genius Bar appointment or contact Apple to repair your Home button.

Place the iPod in recovery mode using one of these programs and then restore via iTunes:

For PC

RecBoot: Easy Way to Put iPhone into Recovery Mode

or

http://joshuabailey1997.wordpress.com/2010/09/02/recboot-v1-3/

If necessary:

Download QTMLClient.dll & iTunesMobileDevice.dll for RecBoot

and

RecBoot tip

RecBoot may have problems on 64X windows, then try:

Tenorshare ReiBoot – Enter & Exit iPhone, iPad, iPod Recovery Mode with a Single Click

For MAC or PC

The Firmware Umbrella - TinyUmbrella

Installs blootware on PC too

if your home button doesn't work then try using the Accessibility go to Settings>General>Accessibility>Assistive Touch and turn it on. Then you can navigate your iPod using the assistive touch button which is a Black dot on the screen and tap it to select where you want to go.

That's too bad. Because the standard way to solve iPhone/iPad/iPod stuck in recovery mode is use the home button and power button. In your case, I think you should use iPod Data Recovery software to restart your device in one click or have your iPod repaired.

The only problem is, my ipod wont connect to internet, and it says it will be erased once it is on the internet

I had the same problem which I solved with some help from YouTube https://www.youtube.com/watch?v=QFV6r2MAFbM

Sounds crazy, but the science is right!