It should be able to play sounds and all with or with headphones... Try holding down the power button and turn it off completely then, turn it back on. If it doesnt work, try turning up the volume if that doesn't work either than take it to an apple store to see whats going on. ? Have a nice day!
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Only the iPod Touch 2nd and 3rd generation can play music out loud without ear buds, since they have built-in speakers.
You just hit play and it plays. It doesn't require speakers or headphones to play. However, if you want to hear it you need to use speakers or headphones.