Just 2 days back, my iTouch had a zoomed screen. All the icons were like 100% enlarged making it difficult for me to use it. It was impossible to scroll the screen in any direction. I tried powering off the iTouch hoping that once its restarted, things will become normal [One thing which Microsoft taught the user community :-D]
But things remained unchanged.
Then somewhere i read to try the following options —
a) Try tapping the screen with 1 finger
b) Try tapping the screen with 2 fingers
c) Try tapping the screen with 3 fingers [This actually worked for me :-). Don’t worry there is no 4 fingers option :-)]
d) Hold your thumb on the edges of the screen to navigate in that direction. e.g. holding your finger on the right-bottom will navigate right, holding on left-bottom will move left & so on. This will solve the navigation problem.
e) Restore factory settings.
f) Upgrade to a new iTouch software version. It seems that apple has a fix for this.
I just hope that you don’t ever have to go beyond option c…