Your Touch is not too old to talk to your computer. I've got two Touches older than yours, a N905 and a N905B, and have no trouble communicating with my computers. So I think the first thing to do is troubleshoot the USB cable and USB ports. The easiest way to do that is to find another (known good) USB cable and/or find another computer for testing (maybe at a friend's house?). If you can't connect with any computer, then it's possible that you have a bad USB port on the Touch (or gunk in the port). I guess it's also possible that the firmware is corrupted — if so, that might require opening the Touch and re-imaging microSD card (I assume the N905C has a microSD card). But, if you can connect to another computer, it's probably an issue with your laptop's USB port. For some reason, some computers don't put out enough power (I'm guessing) through their USB ports and some folks have reported success by using a powered USB hub between the computer and Kobo. On desktops, I've also seen where the front USB ports don't work for connecting to the Kobo, but the back ones (directly soldered to the mother board) do.
At any rate, your Touch should communicate with your computer via USB, so the first thing I would do is troubleshoot that issue. The rest should be fairly easy to fix once a connection is established.
You didn't say, but I'm guessing you can't connect via WiFi to Internet?
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