Plug your iPod into your computer with the sync cable and click on the "Restore" button in iTunes. Your iPod will be set back to factory default settings meaning that your passcode will be removed. Unfortunately, all your content (such as songs, videos, and applications) will also be removed. Applications can be reinstalled from the App Store for free (you won't have to pay again) and your songs and videos will still be found in your iTunes library.
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