What does "does nothing" when plugged into the PC mean? If your PC can't even see the device anymore when you plug it in, then it's probably toast.
If you can see the filesystem when you plug it in, you could try editing the Kobo eReader.conf file and adding:
Code:
[ApplicationPreferences]
SideloadedMode=true
to the configuration. Safely eject and reboot the device, and this should bypass the initial setup. If your Kobo Touch still doesn't work after that, then you probably can't save it.