Your iPod Touch, like most other products in the Apple family includes a passcode encryption feature, to prevent others from accessing any of your media player’s data. Setting a device password, however, can backfire if you draw a blank on the “Enter Passcode” screen. This happens, especially if you hastily enter a new code into your security settings when initially setting up the lock feature. If you absolutely cannot remember the code, you can connect the device to the computer you usually sync your iPod Touch with, and then restore the iPod or its original factory condition. After the restoration, you can reload all of your media from iTunes back onto your device.
Hook the iPod Touch, using its USB cable, to the computer you usually sync the device with.
Click the iPod Touch's listing under the "Devices" in the left column. The "Summary" tab loads with various options, including "Restore."
Click "Restore." A prompt appears asking you to back up the device's settings.
Choose "Back up" to have iTunes back up all your iPod Touch's current data or "Don't Back Up" to forgo the process. If you have not backed up your iPod Touch in a few weeks, then you should choose "Back up" to prevent losing important data. During an automatic sync, iTunes backs up your iPod Touch, so if you have recently synced the device, you can skip backing it up.
Click "Restore." The restoration lasts a few minutes. Click "OK" when a prompt appears informing you the restoration process has completed. A "Set Up Your iPod Touch" wizard opens.
Follow the prompts to set up your iPod Touch. The prompts let you rename your device; choose a backup file, if desired; and sync your library.