I just recently bought a used ipod and am trying to erase content and reset to factory settings but I don't know the Restrictions Passcode.
What does the Restrictions passcode have to do with your problem?
What happens when you connect the iPod to your computer and click on the restore button?
Not knowing the Restrictions passcode should not prevent restoring the iPod.
However, try placing the iPod in Recovery Mode and then restore.
Retrieving data ...