If you're locked out, the only way back in, is to restore to factory default settings.
Try the following:
Make the iPod Touch go to Recovery Mode If for some reason your iPod won't connect to iTunes, or whatever reason it is, you might need to make your iPod Touch into
Recovery Mode. Here's how you could do that.
Makingyour device in Recovery Mode is irreversible. That means, once youexecute this, you can never get back your home screen until youcomplete the restore. So don't attempt this, because there's no room ifyou suddenly decides to change your mind. This method can also be knownas Manual Reset.
Step 1: Hold down the “Home” button
Step 2: Hold down the “Standby” button
Step 3: When it says “slide to turn off”, ignore it.
Step 4: It should restart with a blank screen. DO NOT LIFT THOSE BUTTONS YET.
Step 5: An “Apple” icon appears. You can lift the “Standby” button, but keep pressing the “Home” button
Step 6:Once you see a “connector” and an “iTunes” image (looks like when youjust bought it), that’s when it’s in Recovery mode. You can lift allthe buttons.
Perform a Manual RestoreNowyou will need to perform a Manual Restore on it. The term "Manual", asthe name suggests, does not involve in using automated download viaiTunes. Instead, we are using iTunes do perform the Restore on
the firmware we want.
See:
Download the appropriate firmwareStep 1: Connect the iPod Touch, which is now in Recovery Mode
Step 2: Launch iTunes. iTunes will tell you that the iPod Touch is in Recovery Mode.
Step 3: Hold
SHIFT while
Left-click on
Restore button. A file browser should come up. Select the appropriate firmware, then wait for the restoration to complete.
NOTEYou can also do this Restore if you want to downgrade firmware version 1.1.2 into anything else.
And viola! You should be kicked out of the misery, and start your hacking all over again.
Taken from this website.
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