Brought to my attention by sebp on the forum, there is no way to use tinysc functionality on touch without a network.  There is at least three issues here and perhaps more so this should ultimately be multiple bugs but I will describe at few of them in this bug.

To reproduce the first scenario I started with a factory reset touch with an sd card inserted with music tracks on it and walked though setup on a working network, I used ethernet to make it easy to reproduce.  Once setup I verified that it scanned the tracks on the sd card.  I then disconnected the ethernet from the back of the touch. Now when I select My Music to access the tracks on the sd card I am presented with a Connection Problem screen with my only option to Try Again or Choose Different Network.  My suggestion would to have an additional option here to use "local music" or something similar that would allow use of the locally connected library.

The second scenario is to start with the same situation as the one above except after disconnecting ethernet cycle power on touch.  Once touch fully boots up selecting My Muisc now displays a My Music "To enable "My Music" try the following:" screen and the only option is the back button.  My suggestion is to actually have user options on this screen such as "local music" or "network settings" or similar.

The last scenario I am thinking of at the moment is allowing a user to easily select a local music source from a factory rest.  Even if the two above scenarios are addressed this last scenario would only be available to those that know how to break out of setup and is not user friendly nor a desired way to do it.