Restored iPod touch still requesting passcode.

Hi I needed to restore my ipod as I have forgotten my passcode. I followed the steps on http://support.apple.com/kb/HT1414?viewlocale=en_US but once I got to step 3 the apple sign appeared after the software update got to about 80 percent the apple sign appeared but after the restart the iPod was still requesting a passcode. I have tried this several times and still the same thing. I am using the latest version of iTunes on the computer that I last synced the iPod to which runs windows XP.