Identical problem over here. Nothing works in terms of software: Normal restore, DFU restore to older firmware, hardware reset. I've had my 2nd gen iPod touch for more than a year now. About a week ago it started turning on with a white screen, cycling the power a couple of times got it back into the normal mode. But it got worse and worse. Now, no matter how many times I cycle the sleep mode, interact with the menu button and play with the slider (which seems to be still active based from the sounds), I can't escape the white screen of death. itunes still interacts just fine. Like the man said: very fancy flashlight.