How do I reset an old iPod? My daughter gave her little brother her iPod Touch 8g. I have been trying to update the software and would like to get it rest to a factory clean state so I can linked it to the iTunes that already syncs to his iPad. 

How can I do a clean up and wipe of everything from an iPod?
On Device

Go to Settings > General > Reset.

Then select Erase All Content and Settings



More information about erasing content can be found here: http://support.apple.com/kb/ht2110

Using iTunes

Put the device in DFU mode: http://theiphonewiki.com/wiki/DFU_Mode

Then simply restore the device using iTunes.