What happens if you restore your itouch?

Answer 1

If you reset your iPod, by holding menu and the center button at the same time, it powers down and powers back on.

If you restore the ipod to factory settings. All of the media on the ipod is erased and software files on the ipod are restored.

Answer 2

From My Brothers experience i don't recommend it unless your iPod is having problems, restoring your itouch completely deletes everything off your itouch (music,videos,photos,apps) i recommend first transfering everything to your library so you can put it back on :)

Answer 3

It sets your ipod back to factory mode which basically resets everything on your ipod so if i wanted to keep my things i would sync all my apps, movies, music, contacts etc to iTunes