Ok, not to worry
All contents on his iPod (like your iPad) are stored on a computer. The device will be wiped, but he can put everything back on from his iTunes.
The process is actually quite simple. If he is performing the restore from his computer (containing his files for his device), he can just back up the device and click restore.
Once the process is finished, it will ask if you want to *restore from the previous back up* or set up as a new iPod Touch.
And that's it. I have included a link to Apple Support's advice and step-by-step instructions when restoring iPod Touch/iPhone etc.
http://support.apple.com/kb/HT1414
go down to the "Restoring your iPhone, iPad, or iPod touch" arrow in blue.