Select your iPod from the "Devices" list in iTunes and click the "Summary" tab. Click "Restore."
Click "Back Up" if you wish to back up your data before wiping the device clean. This is your last chance to save anything that hasn't yet been backed up to your computer. Click "Don't Back Up" if you would rather skip straight to the reset.
Click "Restore" and wait while iTunes formats your iPod Touch and reinstalls the factory standard software. Click "OK" when the process is complete.
Resetting a 32 GB iPod touch is a frightening prospect. The restoration process deletes all data, including applications, music, movies and everything else when the device is restored to factory standard condition. Luckily, iTunes gives you the ability to back up your data before wiping the device clean. This means if your device locks up regularly and is functioning poorly, or you've forgotten your password and you can't get in, you can wipe your iPod Touch clean and get things moving again.
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