I got a friend who happen to forgot her password and later disabled her iPod. So I got curious how to reset this kind of gadget because as far as I know there is really a way to reset an electronic gadget specially the popular ones. And based on my research there are three ways to unlocked, reset or reformat your iPod.
First Solution: if it happens that you forgot your password that results to your iPod being disabled and you still have the computer that your iPod was sync in then the solution is simple. You just plug in your iPod to your computer then it would be okay!
Second Solution: if it happens that you don't have the computer in which your iPod was sync in, then this solution is a little bit tricky. First plug your iPod to a computer then open My Computer. Look for the drive where iPod is located (usually it's in drive E:). Open the drive and search for the word _locked. When you already found it then rename it to _unlocked. If you can't find it then go back to My Computer and check if the icon of the drive of your iPod is a camera or if your computer read your iPod as a digital camera then I recommend you follow the next solution.
Third Solution: Before you go on with this solution check first if you have an internet connection and I recommend that it would be a fast one because you may need to download the iOS update for your iPod which is a bit big. First connect your iPod to a computer and open iTunes. Second, press and hold both the power button (top left) and the home button (buttom center) for 30 seconds or until iTunes enters into a Recovery Mode. Just follow the steps and your iPod will be usable again. By the way! I got in a situation that when I finish updating the iOS, nothing happened so all you need to do is just repeat this (third) solution and it will go as it is.