Q: ipod touch set to different language (not sure which one) but need help reseting ipod. dont know what the passcode is, because in different language.

I know this is for the iPhone, but it might help you for the iPod Touch. http://support.apple.com/kb/HT2371

You set up the passcode. Did you use a simple numeric passcode? If not, you need to try to figure out the language to try and translate something, or you can restore the device as new and start over again.

Your best bet is probably to restore it through itunes.

Connect the iOS device to your computer and try to make a backup

iOS: How to back up

Then restore via iTunes. The iPod will be erased. Place the iOS device in Recovery Mode if necessary to allow the restore.

If recovery mode does not work try DFU mode.

How to put iPod touch / iPhone into DFU mode « Karthik's scribblings

For how to restore:

iTunes: Restoring iOS software

To restore from backup see:

iOS: How to back up    

If you restore from iCloud backup the apps will be automatically downloaded. If you restore from iTunes backup the apps and music have to be in the iTunes library since synced media like apps and music are not included in the backup of the iOS device that iTunes makes.

You can redownload most iTunes purchases by:

Downloading past purchases from the App Store, iBookstore, and iTunes Store    

Then if necessary:

iOS: How to change the language when it's set to one you don't understand