Complete a Regular Restore
Step 1: Back up your iPod Touch’s data to your computer before the restore to prevent losing data. You’ll need to reinstall it after the restore process.
Step 2: Connect to the Internet and install the latest version of iTunes from the Apple website.
Step 3: Make sure your iPod Touch is connected to your computer.
Step 4: Pick “iPod Touch” in the Source pane of the iTunes program.
Step 5: Click on the Summary tab.
Step 6: Choose “Check for Update.”
Step 7: Select “Restore” and follow the instructions to finish restoring your iPod Touch.
Complete an Advanced Restore
Step 1: If following the steps in the previous section did not work, follow these steps to perform an advanced restore. Turn off the power on the iPod Touch.
Step 2: Plug the iPod Touch into your computer.
Step 3: Power on the iPod Touch.
Step 4: Press the “Home” and “Sleep/Wake” buttons together for 5 seconds until the Apple logo appears.
Step 5: Release the “Sleep/Wake” button but continue holding down the “Home” button. The iPod Touch should reboot, and iTunes will notice the iPod Touch in recovery mode.
Step 6: Return to the above section and follow those steps to restore your iPod Touch.
Mashimaro_1130 9:56 am on December 23, 2009
Complete a Regular Restore
Step 1: Back up your iPod Touch’s data to your computer before the restore to prevent losing data. You’ll need to reinstall it after the restore process.
Step 2: Connect to the Internet and install the latest version of iTunes from the Apple website.
Step 3: Make sure your iPod Touch is connected to your computer.
Step 4: Pick “iPod Touch” in the Source pane of the iTunes program.
Step 5: Click on the Summary tab.
Step 6: Choose “Check for Update.”
Step 7: Select “Restore” and follow the instructions to finish restoring your iPod Touch.
Complete an Advanced Restore
Step 1: If following the steps in the previous section did not work, follow these steps to perform an advanced restore. Turn off the power on the iPod Touch.
Step 2: Plug the iPod Touch into your computer.
Step 3: Power on the iPod Touch.
Step 4: Press the “Home” and “Sleep/Wake” buttons together for 5 seconds until the Apple logo appears.
Step 5: Release the “Sleep/Wake” button but continue holding down the “Home” button. The iPod Touch should reboot, and iTunes will notice the iPod Touch in recovery mode.
Step 6: Return to the above section and follow those steps to restore your iPod Touch.
http://www.ehow.com/how_2249655_restore-ipod-touch.html