How can you restart the setup process on an iOS device?

If you already completed the setup, go to Settings > General > Reset > Erase All Content and Settings.

If you haven't completed it yet, press the home button and then tap "Start Over."

Without knowing the current status of the iPod all I can suggest is:

Try:

- iOS: Not responding or does not turn on

- Also try DFU mode after try recovery mode

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

- If not successful and you can't fully turn the iOS device fully off, let the battery fully drain. After charging for an least an hour try the above again.

- Try on another computer

- If still not successful that usually indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.

Apple Retail Store - Genius Bar