Interesting Touch Crash / Pink screen, bad hardware??

[TroyMcClure]

Thanks for the help in advance, on to the problem. I recently purchased over ebay a 1st gen 32 GB touch. It came with the 2.0 software, not sure exactly which one. I picked up the package, and on the way home began playing with it, (had a charger to give it a bit off juice) anyways, everything was working and in order, after a few minutes, set it down, went to sleep, and didn't come right back on when i pushed down the wake up button. Long story short, after a couple of minutes, without ever plugging in the device, I ended up with a non booting ipod, the restore icon came up once, I tried reseting again, then ended up with an odd pink screen. just lots of randomness pretty much. I have been trying many different things.
Current list of attempts to restore:
Itunes 8.0 with 2.0 software and 1.1.4
Itunes 7.5 with 2.0 and 1.1.4
Itunes 7.7 with 1.1.4
a custom ispw with winpwn (never properly picks up the device)
I have done all of this in normal restore mode and DFU mode... never seems to work
The closest I have gotten is 7.5 it says "preparing" then I get a variety of errors, 1601 or 1604.
but with 7.5 the normal restore mode driver will not get recognized.
Also, I NEVER have an apple logo, at the very first I did, but not anymore, simply just this random pink garbage where the restore mode screen should be.

I hope that is a good enough description, I have tried all that I can think off.. So the question bad hardware? but it worked at first and I barely touched it. The ONLY possible thing that could have affected it is a magnet that got within 4 inches of it... so I am stumped, any help would be great, if this does not work, I will be sending it back, but eh, so much time. Thanks Again