To circumvent a forgotten passcode you would need to restore the iPod to factory settings. This will remove the software and data/content from your iPod as well.
To put your iPod/iPhone into recovery mode:
1. Make sure the iPod/iPhone is connected to a computer with iTunes installed on it.
2. Hold down the sleep/wake button(top button) and the home button at the same time until the iPod/iPhone screen goes black then shows the apple logo( usually 10-15 seconds).
3. Once the apple logo appears on the screen, let go of the sleep/wake button and keep holding the home button.
4. The ipod/iphone screen should show an itunes logo and usb cable if you were successful. A dialog box will appear in iTunes that states an iPod/iPhone in recovery mode has been detected if you are successful.
5. Click ok, then click the Restore button
After that you should be up and running in no time!
I hope that this is helpful.