Thanks. I've tried that, and it didn't work. Just kept getting a 2 second blue followed by a green blink.
But... I turned the Touch off by holding the power switch until dancing squares stopped (approx 5 seconds). Then did the paperclip thing (for about a second). Then held the Home button while flicking the power switch. Got 2 RED blinks and then a Green, then dancing squares (for 5 minutes now).