Recovering a locked iPod Touch
Maybe you could try restoring the iPod touch? If you enter DFU mode (described below) and click Restore, you'll get the iPod back up and running.

To enter DFU mode...


Press and hold the Home and Power buttons until the device turns off.
When it does, hold Power for three seconds.
The device should turn on. Now hold the Home and Power buttons (DON'T LET GO OF Power) for ten seconds. The device should turn off - that's fine.
Let go of Power -- keep holding Home until you hear your PC recognise the device.


The iPod touch should subsequently be available in iTunes as if it were in recovery mode; you should now be able to restore the device.