I found this info
this works....
1. Be sure iTunes is closed and iPod touch is connected to the computer
2. Turn off your ipod by "slide to power off"
3. After its off, hold down the sleep/wake button and the home button at the same time, when the apple appears, let go of the sleep/wake button but continue holding the home button until the connect to iTunes symbols come up on your iPod.
4. Open up iTunes and iTunes will tell u to restore, restore it.
5. If your iPod happened to have a passcode you were unaware of and you synced the iPod when it had the passcode then don't restore your old settings, set up as new iPod. But if you had last synced it before putting the passcode, then just use your old settings after the restore.
Two reasons this is disabled for so long.
1. You have entered the incorrect 'power on' password many, many times.
or
2. You have jailbroken (jailbreak) your iPod Touch and one of the apps you have installed has caused the problem. Possibly a malicious app.
Two ways to fix it. Either wait 4317939 minutes or restore it using iTunes
The first link below gives details of why a non-jailbroken iPod Touch is disabled.
Second link gives instructions on how to restore your iPod Touch using iTunes.
Source(s):
http://support.apple.com/kb/HT1212
http://docs.info.apple.com/article.html?