My iPod created its own password and locked me out, now I have to restore it, but iTunes won't restore it.

When I powered off my iPod Touch (2nd Gen) and back on, it created a password, which I never had one set. After trying several times, it has locked me out officially and is saying, "iPod is disabled Connect to iTunes." When I managed to get it into recovery mode, it will start to restore it, then come up with an error message saying, "The iPod "iPod" could not be restored. This device isn't eligible for the requested build."

Any idea on how to get it to restore?

-Thanks!

I did have a password, but got rid of it in November of 2011. I did try it, as well as several other passwords.