IPod Touch 5G very unresponsive, almost as if acting on it's own.

Question

So basically when I had updated to iOS 7 it was nice, occasional little thing, but it kept working. Now though a few of the little things have expanded since I updated to iOS 7.0.3. As of now I can not type on the keyboard without it e.i;closing itself, pressing enter, typing random letters, or opening the following window: https://ieonline.microsoft.com/#ieslice. It is also very slow all of the sudden, the battery never goes above 50% anymore. Even with plugged in all night it didn't go up. Here is an example of the random keyboard entries from the iPod,
"Thimieoy jhdgiopepequt. Bnmauposag jupi uipeprood isgetting" This was meant to say "This is how bad my ipod is getting." Instead it came out like that. I have looked for solutions such as reset all settings, go to Settings>General>Accessibility>Reduce Motion>On, go to Settings>iCloud> Documents & Data>Off, and restoring iPod to earlier time before major issues. All these being tried and done, none resulted in success, it keeps returning to having 'spasms.' Most of the time the device gets stuck and takes a minute to process everything and moves a little before either slowwing to a continuous slow rate or getting stuck again. I havn't dropped the device, no physical abuse was initiated upon the device. It still makes no noise and otherwise works normally. At one point at night I thought it be wise to turn off the iPod and charge it, thought when I tried turning it off, the slider was glitching so much that it took 4 tries to power down the iPod. This worries me, please suggest courses of action to take from here, my warrenty is on until 11/1/2013 so I will most likely send in my iPod for repairs and hopefully they can fix whatever is happening.

Answer 1

- Reset the iOS device. Nothing will be lost
Reset iOS device: Hold down the On/Off button and the Home button at the same time for at
least ten seconds, until the Apple logo appears.
- Reset all settings      
Go to Settings > General > Reset and tap Reset All Settings.
All your preferences and settings are reset. Information (such as contacts and calendars) and media (such as songs and videos) aren’t affected.
- Restore from backup. See:                                 
iOS: How to back up                                                                
- Restore to factory settings/new iOS device.             
If still problem, make an appointment at the Genius Bar of an Apple store since it appears you have a hardware problem.
  Apple Retail Store - Genius Bar