forgot password and ipod touch is disabled

Disabled

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

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 most iTunes purchases by:

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

If you previously synced to the computer then you may be able to recovery use of the iPod without erasing the iPod by following the instructions here:

Disabled Recovery-must use syncing computer.

my home button doesn't work so i can't access itunes to fix my disabled ipod but i know my apple id and everything

If you previously turned on FIndMyiPod on the iPod in Settings>iCloud and wifi is on and connected go to iCloud: Find My iPhone, sign in and go to FIndMyiPhone and use Remote Wipe to erase the contents of 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 after the device has been erased.

You can also wipe the iOS device by installing the FindMyiPhone app on another iOS device and using that app to wipe the device.

See my first reply on page 3 in this discussion for how to place the iPod in Recovery mode w/o buttons. The link opens to page 3.

Turn on without Home/Power Button