How can I revive dead pixels on my iPod Touch (second generation)?
I dont know about how comfortable you are with taking electronics apart, but it sounds like the connector for the screen might be coming loose, or the screen might be on the way out. I would recommend buying a replacement screen on eBay, or paying apple to fix it for you.
Do you have a dead pixel (black) or a stuck pixel (stuck on one color)? Those suggestions work occasionally for stuck pixels, but if you have dead pixels, you're out of luck, unfortunately.