Every time I download something from the app store, in never actually installs on the home screen.

So I'm sitting there on my bed, going through the App Store looking for some new Apps. I download some but I notice when I click the home button their nowhere to be found. I look in folders, everything. I go back to the App Store and try to open the App from there, but every time I tap the button it does not work. I decided to restore my IPod to factory settings hoping it would help the problem. For a short amount it did. I could download apps and nothing would happen. Finally I tried to install and App, and it did not appear on the home screen. The problem happened again, and I would really like to know how to fix this.

If you successfully restored (went through all steps without error) to factory settings/new iPod via iTunes (Not via Settings>General>Reset>Erase all Content and Setting) and still have the problem that indicates a hardware problem.
Make an appointment at the Genius Bar of an Apple store..
Apple Retail Store - Genius Bar

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