i cannot unlock my ipod. i input my password but it won't unlock

What to Do If You've Forgotten Your iPhone's Passcode

Restoring iPod touch after forgotten passcode

iPhone, iPad, iPod touch: Wrong passcode results in red disabled screen

The only way is to connect to your computer and restore (Through iTunes). No harm done, you'll just have to re-sync all of your stuff 😟, basically, your Touch will be like it was out of the box, no worries.

Good luck to you! 🙂