Restore iPod Touch without passcode or power button

It sounds like the home button still works, which is the only button you need to have iTunes recover the iPod for you. Note that recovering the iPod will wipe all of its data completely.

I tried this with an iPhone which I believe was in much worse shape than this and it worked. In my case my phone never got past the Apple logo and would shut down shortly after. Even a hard-drive restoration company wasn't able to access the data, yet the recovery through iTunes did work, so there is hope.

Apple calls this recovery mode.

All you need to do is press and hold the home button on the iPod while connecting it to the PC. iTunes should detect an iPod in recovery mode and allow you to recover the device (again, this wipes out all data completely).

I have the solution for you here.

1. Plug the iPod into iTunes
2. Hold the power and home button together until the screen goes black
3. Let go of the power button, keeping home pressed
4. after 10 seconds let go.
5. open iTunes and click restore iPod.

you have a blank iPod, and will need to sync again

Update (from original poster)

These steps are correct, I had to actually go to the Genius Bar to find that out because the instructions on Apples own site are not correct. Specifically they do not recommend the two-button shutdown, but rather a regular shutdown which does not work.

More details here: http://codesweattears.blogspot.com/2011/12/putting-your-ipod-touch-into-recovery.html