Yeah, just do a quick google search for restoring ipod touch without a computer. This should give you step by step instructions on how to bring it back to it's original factory settings. Once you've done this, let me know what the status of the device is, ie what it is doing and how it is functioning.
Note - you will lose all data, but if you've got it backed up on your computer, this stuff can be recovered. It could be that you've got a couple of apps that are conflicting with each other, so even though you are wiping it, you recreate the problem when you restore all of your info.
I'm just trying to help with trouble shooting here - it's hard to do without having the device in my hands, so we may have to try a few different things before we can find the root of your issue.
Also, is the device jailbroken?