reset ipod and passcode
i was given ipod touch it was passcode locked so we tried the factory reset by holding power and home key and connect to laptop... it isnt working
iPod touch
Place the iOS device in Recovery Mode and then connect to your computer and restore via iTunes. The iPod will be erased.
iOS: Wrong passcode results in red disabled screen
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