I have a 32gig. ipod touch model A1318,touch screen dosent work,any idea's

This problem has happened to me and it you can not fix it, try bringing it to apple.

You'll have to reset it, but next time don't put a passcode

iPods come in a variety of generations and models, including the nano, Classic and Touch. Depending on your model you may be able to record video, play games or watch television.
If you're unsure of your device's model, you can determine which iPod you have by using your serial number.
After determining your model, you can find out which features and capabilities your iPod has.

Go to Apple's official website (see Link Below) and click the Support tab.
http://www.apple.com/
Click the Online Service Assistant link, which is located in the Support Services menu on the right side of the screen.
The Service and Repair page will open.
Find your iPod's serial number.
This is engraved somewhere on the back of your iPod, either on the body of the device or on the clip.
You can also find it in your iPod's About screen by clicking Settings and selecting About (or General followed by About on an iPod Touch).
Enter your iPod's serial number and click the "Continue" button.
Your iPod model and generation will be displayed at the top of the screen.
http://support.apple.com/kb/HT1353
also
With each new generation of the iPod Touch, you get new features and updates to the older generation.
The 2nd and 3rd generation iPod Touches are very similar in physical appearance.
The easiest way to determine what generation of iPod Touch you have is to check the model number on the back of the device.
The 2nd and 3rd generation iPod Touches were given unique model numbers to help distinguish your device generation.
Remove any protective case from the iPod Touch so you can see the back of the device.
Locate the model number at the bottom of the back of the device.
Check the model number against the following model numbers.
Third generation iPod Touches are model number "A1318." Second generation iPod Touches are model number "A1288."
Identifying iPod models
http://support.apple.com/kb/ht1353

The 32 GB and 64 GB configurations of the iPod touch 3rd Generation are only supported by the last version of iOS 5. They are not supported running iOS 6 or subsequent versions of the operating system.
The 8 GB configuration is not even supported by iOS 5.
iPod touch 3rd Gen 32 64 GB 32 GB 64 GB Specs 3rd Gen Late 2009 A1318...

In most cases the touch screen, also called a digitizer, is broken and not sending your finger presses to the phone. You would need to either order a replacement from ebay and replace it on your own or you would need to take it to a repair shop and have them replace it. If you replace it on your own you should search youtube for videos showing you how to do it,

Use the Home button to exit the internet application. Listen to some music or browse pictures to make sure your ipod is working fine and then reopen the internet application. It should run smoothly.

Get the ipod touch screen and digitizer replaced.

it cost $30 because it is Arsenic free Glass

$50 to someone that does not care, once they verify that the reset is working.
How much would you pay?

£53 from these guys www.ukipodrepairs.co.uk