Forgot password/pin for itouch
What do you do when you forget your password to your itouch and cannot enter it?
iPod touch
Connect the iOS device to your computer and try to make a backup
Then restore via iTunes. The iPod will be erased. 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
For how to restore:
iTunes: Restoring iOS software
To restore from backup see:
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