Here are some things to try if your iPod touch is frozen and not responding.

Force quit program: Press and hold the Home button until the program you are using exits.

Turn it off: Press and hold the Sleep/Wake button until  the red slider appears. Drag the slider. Then press and hold the Sleep/Wake button until the Apple logo appears.

Reset iPod Touch: Press and hold Sleep/Wake + Home until the Apple logo appears.

Reset all iPod settings: On the Home screen choose Settings > General > Reset Reset All Settings.

Erase everything:  On the Home screen tap Settings > General > Reset > Erase All Content and Settings.

Hopefully with these steps, your iPod Touch responds and is now fixed.

Source: iPod Touch Manual