There are programs out there that can achieve things such as getting into recovery mode or if your stuck in recovery mode it will kick the device out of it. DFU mode is basically another kind of recovery mode other than the original one already detected by iTunes. DFU bypasses firmware issues, most of them.
A program called Recboot may help you in this occasion.
i have a link too download it but just check Google for future updates on the program.
http://www.mediafire.com/?nn1kzmmwkjg
If this doesn't work then just try to plug your device in and click restore. Make sure you have a backup of your device and simply restore it back to original. Even though i would extremely recommend you get your Home button fix pronto its just one of those things you need too have, but quick tip: if you get your iPod Touch back into original state and you are one of those who (Jailbrakes) their devices i would download through Cydia called Activator. This makes you be able to use functions like your home button would with any other button or even the status bar,ect & ect.