Warning: Because Restore erases all of the songs and files on iPod, make sure to back up any files you've saved on the iPod disk. All of your songs, videos, podcasts, audiobooks, and games can be loaded back to your iPod provided that you have them stored in your iTunes Library.
How to restore your iPod:
Make sure you’ve reinstalled the latest version of iTunes.
Open iTunes, and then connect your iPod to your computer.
After a few moments, it will appear in the Source list in iTunes.
Select your iPod in the Source list and you will see information about it appear in the Settings tab of the main iTunes windows.
Click the Restore button. You will be prompted with one or more restore options that may prompt iTunes to automatically download of the latest iPod Software. The 4 possible restore options are:
Restore Option 1: Restore - Restores with same iPod Software version already on iPod.
Restore Option 2: Use Same Version - Restores with same iPod Software version already on iPod even though a newer version is available.
Restore Option 3: Use Newest Version - Restores with the latest iPod Software on your computer.
Restore Option 4: Restore and Update - Restores with the latest iPod Software on your computer.
A progress bar will appear on the computer screen indicating that the first stage of the restore process has started. When this stage is completed, iTunes will instruct you to leave iPod connected to your computer to complete restore.
Restore Instruction 1: Disconnect iPod and connect it to iPod Power Adapter (typically applies to older iPod models).
Restore Instruction 2: Leave iPod connected to computer to complete restore (typically applies newer iPod models).
During the stage 2 of the restore process, the iPod will show an Apple logo as well as a progress bar at the bottom of the display. It is critical that the iPod remains connected to the computer or iPod Power adapter during this stage. Note: The progress bar may be difficult to see since the backlight on the iPod display may be off.
After stage 2 of the restore process is complete and the iPod is connected to the computer, the iTunes Setup Assistant window will appear asking you to name your iPod and choose your syncing preferences similar to when you connected your iPod for the first time.