Hey guys.
I have just recently had this problem. I'm running 1.1.4 JB and I don't have Dock OR Categories installed. I freaked out after a couple of restarts (both sleep and Hard restarts) because I have had this problem before, and it usually fixed itself after a couple of restarts. This time, it didn't fix itself at all.
Finally, I took it out of my dock and UN- plugged it. I did a hard restart and now it's working fine.
One thing I'd like to mention; I
did have Intelliscreen installed, so this might have caused some issues.
I'm just glad because my iPod Touch is working fine w/out a Restore.
