Try this:Press and hold down the Sleep/Wake button and Home button simultaneously for a least 30 seconds. The screen will clear out and then the Apple Logo will appear on the black background. When the logo appears it means that the reset is done.
1. Hold down power AND home (the round button) until the phone turns off completely. Touch nothing else. Keep holding those buttons.
2. Once you’re in a reboot cycle, let go of power. Hold home down for two minutes.
3. Your iPhone/Touch may freeze with a blank screen. Connect it to your Mac or PC and see if iTunes detects it in restore mode. Restore to the previous good firmware.
4. If this fails, disconnect from iTunes and repeat these steps. Do not lose patience. Sometimes it doesn’t work the first time. Sometimes it take a few turns to get it.