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Ok, I found this reference to my problem:

http://blog.matsimitsu.nl/english/183/howto-fix-the-edit-home-screen-loop-for-iphone

In fact, I DID change the root password...the unix sysadmin in me couldn't stand leaving a universal root password, especially one remotely accessible.

Now, after sshing to the IPod Touch and following his instructions and rebooting, I appear to be stuck on the silver apple startup screen...resetting the I-Pod just gets me back to that again. Now I can't ssh or even ping it.

I am in some trouble here...I just got this thing replaced under warranty....(not due to any hacking, but hardware).
Quoting myself hopefully for the last time...I WAS able to restore the IPT, using this:

This has been repeatedly covered:

I doubt you've bricked it.

You need to put it in restore mode.

Keep holding the 2 buttons, until you see the apple logo.

Stop holding the power button, but still keep holding the home button, and you will see an image of the iPod connector and the logo of iTunes.

It should restore now.

Make sure it is plugged in via USB whilst doing this.

Good luck. -Stenosis
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I didn't know about holding down the menu button after normal reset. Whew...this hacking your IPT thing isn't for the feint of heart...but I'm feeling cocky again already :p
 
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