Tom's not too much, Ted's a bit nuts (7)
I believe the answer is:
touched
'nuts' is the definition.
Both the answer and definition are adjectives. Maybe there's a link between them I don't understand?
I cannot understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for touched that I've seen before include "begged a loan" , "Moved sympathetically - mad!" , "Felt" , "Made to feel sympathy - or slightly mad?" , "Made contact" .)