We are getting a message that the ipod touch is disabled, and it is telling us to connect to itunes. When we connect, it tells us to enter the passcode into the ipod, which is impossible when the ipod is disabled. How can we fix this?

When your iPod Touch displays a message telling you to connect it to iTunes, it may be in recovery mode, or have been disconnected in the middle of an update.
To get rid of the screen, you must reset your device. If in passcode mode, an iPod Touch must be manually unlocked or fully restored to get back to the home screen.Forcing a Reboot
When your iPod Touch is stuck on a screen that is instructing you to connect with iTunes, a normal restart will probably not work, as the hard drive has become frozen.
You can still, however force the iPod to reboot using a process called resetting.
To reset an iPod Touch, hold down the "Sleep/Wake" and "Home" buttons at the same time until an Apple logo appears, indicating that the device is rebooting.
When an iPod Touch reboots, it always goes back to the lock screen. Passcode mode will still be enabled.

Unlocking With the Passcode
If you know the passcode for your iPod Touch, slide the "Slide to Unlock" arrow and then enter your code on the next screen.
Upon entering your password, you will be directed to the device's home screen. If you enter the wrong password too many times, it will become disabled temporarily.
The iPod Touch can also be set to erase all content after 10 incorrect passcode attempts if you previously enabled this feature, don't attempt more than 9 entries.


Unlocking Without Passcode If you have forgotten the passcode to your iPod Touch, the only way to unlock the device is by restoring it.
Restoring an iPod Touch returns it to the factory settings, meaning that any settings, applications or music you added to the iPod are removed.
Once the device is restored, you can re-add your downloads and other information using the backup copies in your computer iTunes program.
The passcode setting will be disabled unless you manually enable it again.

Consideration

If you don't have a backup of your music and applications in iTunes on your computer, you can also download another copy from the iTunes Store or App Store on your device after a restore.
Any photos that are deleted during restore, however, will be lost forever if a backup does not exist.
Always back up your information via sync on a regular basis to avoid this problem.

You can try putting it into DFU mode and restoring the firmware
here's how you put the ipod into DFU mode - connect your ipod touch to your computer - turn off your ipod touch - press and hold the Home button and sleep/wake button at the same time - After about 10 seconds release the sleep/wake button but continue holding the Home button until the iTunes pops up a message telling you that it has detected an ipod in recovery mode - now you will be able to restore it..

connect your ipod to itunes and then click on your ipod. then click on updater and your ipod should be good as new.
this process is all on the computer.

plug in your ipod to your computer open up itunes and when your ipod appears under the devices section click on it and then under summary you can restore and reset the ipod

you will have to restore your ipod to factory default settings in itunes.
or you can jailbreak the ipod with software like quickpwn.

Here is how to restore your ipod in itunes.
You will need to put the itouch in DFU/Recovery mode to get it to connect.

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Hold the Home Button down for 5 second (do not release it)
Then Press and hold the Power Button for approx 10 secs (count them out)
Your iPod will reboot.
Release the power button and continue holding the Home button for an additional 27secs.
You may see the screen go blank or not.
Plug the USB end into the computer with itunes open.
Your ipod will mount in recovery mode.
Restore it and Your all set.

if you need any further help let me know.
Good Luck

press and hold the home and power buttons, when it turns off DO NOT let go of the home button continue holding until it restores itself then connect it to your computer and restore it. unfortunately it will erase everything.

Hey,

read this page i posted
http://www.fixya.com/support/r977231-disabled_or_code_forgotten
Let me know if you need anything else.


Thanks,
Ekse

put the ipod into restore mode, hold the power button down and the menu button for 20 seconds,then when you see the screen changed to the ipod usb,connect it to your itunes

Try turning off your ipod, holding the home button, and plugging it in, while still holding the home button, until a picture of the ipod cable appears pointing to the itunes symbol. this will reset you ipod, and you don't need the passcode to make it usable again.

Hold sleep and home button for ten secs (or until you see recovery mode screen) then connect to itunes