It should work with 4.34.20097. I would suggest checking for database errors, file system errors, etc. and then trying again. You might also want to try updating stepwise (i.e. go to 2.6.2, then 3.19.5761, then 4.34.20097). See pgaskin's
Kobo Firmware Downloads page for links.
One item to make sure you download the firmware for the correct Touch version. They came in N905 and N905B which were kobo3 hardware and N905C which was kobo4 hardware.