my i-pod touch needs reset to factory settings, and it needs all music removed from it

Plug it into iTunes and reset it from there.

Connect the iOS device to your computer and restore via iTunes. The iOS device will be erased. Place the iOS device in Recovery Modeif 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

Not knowing what you mean by " how do I get my i-pod to know my id and password?" maybe this will hlep.

If FIndMyiPod was turned on in Settings>iCloud you will have to enter the ID and password used in order to activate the iPod. If necessary.

Find My iPhone Activation Lock: Removing a device from a previous owner’s account

How to find your Apple ID

Use these steps if you forgot your Apple ID or aren't sure that you have one.

Your Apple ID is the primary email address for your Apple ID account. It’s also the personal account that you use for everything you do with Apple including shop the iTunes & App Store, sign in to iCloud, use iMessage, and more. You only need one Apple ID. Using multiple Apple IDs might be confusing when you access purchased content or when you use certain Apple services.

If you forgot your Apple ID or aren't sure that you have one, follow these steps:

1. Go to My Apple ID and click Find your Apple ID.
2. Enter your first name, last name, current email address, and any prior email addresses that you might have used as an Apple ID. If you find multiple IDs, choose the one that matches your current email address.
3. If you find your Apple ID, follow the onscreen steps to access your account. You'll then need to reset your password and update it in your settings. If you remember your password, click Cancel and sign in to My Apple ID using your login information.

If you can’t find your Apple ID using the steps above, check the Apple ID already signed in to your Apple services. After you sign in to My Apple ID, you can update your Apple ID email address to make sure you won’t forget it.

If you forgot your Apple ID password - Apple Support