Can't connect to iPod: iTunes claims iPod Touch needs passcode entered At some point my daughter entered the wrong passcode too many times on her iPod Touch 2nd gen.  I'm trying to reset the iPod as follows:


Unplug the cable from the ipod
turn the iPod off by holding down the sleep/wake button and dragging the red arrow across the screen
Hold down the home button and connect the USB cable to the iPod
Keep holding the home button until the "connect to itunes" screen comes up


The problem is directly afterwards itunes always complains, stating "itunes could not connect to the iphone because it is locked with a passcode. You must enter your passcode on the iPod before it can be used with iTunes"

The issue is that the iPod is stuck at the "connect to itunes" screen so I cannot enter the passcode.
I have the solution for you here.


Plug the iPod into iTunes
Hold the power and home button together until the screen goes black
Let go of the power button, keeping home pressed
after 10 seconds let go.
open iTunes and click restore iPod.


you have a blank iPod, and will need to sync again

Update (from original poster)

These steps are correct, I had to actually go to the Genius Bar to find that out because the instructions on Apples own site are not correct.  Specifically they do not recommend the two-button shutdown, but rather a regular shutdown which does not work.

More details here: http://codesweattears.blogspot.com/2011/12/putting-your-ipod-touch-into-recovery.html