A spark from a power strip recently made the electricity go out is it safe to turn it back on?
I would suspect your daughters iPod charging port has shorted. It is not uncommon, and a known issue with late model 4-5 phones and pods, but heavily denied by Apple. While her room's circuit is off, unplug the iPod and power strip. Then turn the circuit on and test it out with something that is known to work well, a lamp, or if you want something to pull some current, try a blow-dryer. If everything works well, try the power strip with a lamp or something else. Finally, since your ipod is already scorched from shorting, get it replaced under warranty, or not if water was the cause of the shorting (good chance of this, ask your daughter.). 

Source: verizon wireless forums(iPhones and iPods are very similar) and http://www.yourgadgetguide.net/my-iphone-5-caught-fire-why-apple/