Why did my brand new Ipod 5g 32gb touch screen stop working?

So I got this ipod from the Genius Shop for about a month. A few days ago when IOS 7.1 came out, I updated it. However, the ipod seems to lag a little. Today, I was charging my ipod and for some reason, when I turn it on, the touch screen stop working (the ipod is in perfect condition). The home button, volume button and the on/off button all works fine except for the touch screen. I want to restore everything on my computer, but I can't get pass the lock screen (the touch screen seems to stop working). I just can't do anything on this ipod anymore beside turning it on and off. I can't even power it off because the touch screen is no longer touchable. So how can I restore everything, or do something about this ipod to work again. Can I still take this back to the Genius Shop and get another one without additonal charge?  

If the reset does not work try the remaining items of:
- iOS: Not responding or does not turn on
- Also try DFU mode after try recovery mode
How to put iPod touch / iPhone into DFU mode « Karthik's scribblings
- If not successful and you can't fully turn the iOS device fully off, let the battery fully drain. After charging for an least an hour try the above again.
- Try another cable       
- Try on another computer                            
- If still not successful that usually indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.
  Apple Retail Store - Genius Bar                              

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