- Try Recovery mode and then restore a couple of more times.
- If recovery mode does not work try DFU mode.
How to put iPod touch / iPhone into DFU mode « Karthik's scribblings
- Try another cable
- Try on another computer
- 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.
- If still not successful an appointment at the Genius Bar of an Apple store is in order.
Apple Retail Store - Genius Bar