I believe the Touch (when powered for the first time or reset) needs
internet connection. Back when I had a Touch I was only using the
internal TinySBS. I was able to bypass the opening screens by pressing
the Home button on the remote. 

One day I decided to update the Touch to the latest firmware and when I
did I was unable to get past a certain setup screen. (Might have been
Choose Language, I forget). Even the Home button, which worked on the
previous firmware, wouldn't bypass it. So my only option was to hook the
Touch to a network/internet but I didn't even have a router at the time
so I went back to the previous older firmware and once again I was able
to bypass with the Home button.

If you do have an internet connection, then there might be something
wrong with the Touch.

Here's another thread with a similar issue, which may help you...

https://forums.slimdevices.com/showthread.php?83299-Trying-to-setup-Touch


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