How to restore iPod Touch 2nd Generation
iPod is disabled and can't remember password! How can I get it to restart?
if you hook it up to the computer via itunes and select the "restore to default" option or it might be called something a little different, (it's been a year or more since i owned one).
this will completely erase the ipod, and should erase any passwords.
(this will completely delete everything on the ipod)
you will have to re sync all your music and pictures and anything else on there as well as any updates that might be needed.