I saw this in the Apple forums. Worked really good for me and several other people are reporting the same:
Just to confirm for everyone after a bit of research. Ive repaired about 12 button issues on out of warranty ip4's.
It is a mechanical issue.
The iso trick is smack bang on and is used on all buttons that use a metal dome contact
As the ip4's do.
Im an electronics engineer so can vouch for that.
U need to be sure the isopropyl alcohol ur using is 100% pure
As it is so close to non condictive (compared to anything else u could use)
that its almost guaranteed safe.
Step one...
Drain ur battery flat ... Completely.
Ensure the device is off and place exactly two whole drops of
Alcohol on the home button...
Depress the button 2 or 3 times to work the alcohol in.
Step two....
Wipe off the excess and "tap" the button firmly and rapidly about 10 times...
Not too hard or u could dent the metal dome contact and ruin the button.
Turn the device upside down and using a rag on ur finger continue to tap the button untill
There is no more evidence of alcohol seeping out around the button.
Step 3...
Let the ip4 sit in a warmish place for 15 mins... Recharge and...
VOALA!
No more sticky button!
Best repeated as soon as symptoms occur , before the dirt builds up too much.
The idea is.. There is an air gap arround the metal dome contact that allows the grease and
dirt from ur finger too work its way in.... Flushing it out with iso is guaranteed to remove most , if not all of
the contaminants.
if the button was'nt designed as a semisealed unit u could stick a piece of adhesive tape
over the contact to seal it. As some manufacturers do, unfortunately that is not the case with the ip4.
CAUTION!!!!
performing this fix on ur ip4 could void ur warranty.
Out of warranty, its guaranteed.
It will last untill more dirt and grease gets in, at which point repeat the fix.
If done correctly and swiftly, no damage will result.
Enjoy!