can a ipod touch get reset at home or what is the procedure

Restore, if iTunes will let you. Everything except the password will be restored. Connect via cable to the computer that you use for sync. Be forewarned that it takes a long time. From iTunes, select the iPad/iPod and then select the Summary tab. Follow directions for Restore and be sure to say "yes" to the backup. You will be warned that all data (apps, music, movies, etc.) will be erased but, as the Restore finishes, you will be asked if you wish the contents of the backup to be copied to the iPad/iPod. Again, say "yes."

At the end of the basic Restore, you will be asked if you wish to sync the iPad/iPod. As before, say "yes." Note that that sync selection will disappear and the Restore will end if you do not respond within a reasonable time. If that happens, only the apps that are part of the IOS will appear on your device. Corrective action is simple - choose manual "Sync" from the bottom right of iTunes.

If you're unable to do the Restore, go into Recovery Mode per the instructions here.

Connect the iOS device to your computer and restore via iTunes. Place the iOS device in Recovery Mode if necessary to allow the restore.

If recovery mode does not work try DFU mode.

How to put iPod touch / iPhone into DFU mode « Karthik's scribblings

If you don't have access to a computer

If you are using Find My iPhone, you can use Remote Wipe to restore your device. If you have been using iCloud to back up, you may be able to restore the most recent backup to reset the passcode.

For how to restore:

iTunes: Restoring iOS software

To restore from backup see:

iOS: How to back up

If you restore from iCloud backup the apps will be automatically downloaded. If you restore from iTunes backup the apps and music have to be in the iTunes library since synced media like apps and music are not included in the backup of the iOS device that iTunes makes.

You can redownload iTunes purchases by:

Downloading past purchases from the App Store, iBookstore, and iTunes Store