Will this work on an iPad 2?
We get asked for a password when we try to reset on the iPad?
iPad 2, iOS 5.1.1
Are you referring to the passcode that must be entered before you can unlock the device? If so, you'll need to connect the iPad to your iTunes library in recovery mode and restore it. See this article for instructions on getting your iPad into recovery mode.
iPad: Unable to update or restore
B-rock