Hello bluefly101,
Welcome to the Apple Support Communities!
I understand that the touchscreen on your iPod nano (7th generation) is not responding to your touch when you try and set it up. I also that after you reset your iPod and synced it, you cannot access the menu on the iPod. To further troubleshoot, I would suggest working through the steps in the attached article.
iPod nano (7th generation): Hardware troubleshooting - Apple Support
The Five Rs: Reset, Retry, Restart, Reinstall, Restore
Remember these five basic suggestions if you have an issue with iPod nano. Try these steps one at a time until the issue is resolved. If one of the following doesn't help, read on for solutions to specific issues.
Display
Follow these steps if your iPod doesn't respond to your input or has a display-related issue.
Screen is unresponsive and displays Apple logo or white screen
- Reset iPod by holding down the Sleep/Wake button and Home button until you see the Apple logo appear. If the Apple logo appears on the display, connect iPod to a computer and verify that it appears in iTunes.
- If the Apple logo does not appear, or if the iPod is not seen in iTunes, connect it to iTunes and try to restore.
Touch screen does not accept input
- Clean the screen with a microfiber polishing cloth.
- Do not wear gloves while using the touchscreen. Do not use the touchscreen with wet hands or immediately after applying hand lotion. Moisture affects touchscreen behavior in the same manner as it affects a trackpad.
- If you have a protective plastic sheet or film on the touchscreen, try removing it, because it may be preventing the touchscreen from working properly.
- The current application may be unresponsive; try resetting iPod by pressing and holding the Sleep/Wake button and the Home buttons simultaneously for a least six seconds, until the Apple logo appears.
- Sync with iTunes and restore the iPod.
Have a great day,
Joe