I am going to start out and say my brother has not updated it to 2.2 but it is 2.0.2. Anyway we where just sitting around so I started to try to guess his passcode until it got the 1 minute lock and then he would just unlock it after. I started to notice that when I tryed 2 times and and "try again" blinked twice if I hit cancel I could start over without it becoming disabled. The 3rd time I did this and messed up the slider disappeared and said iPod disabled connect to iTunes. I was like
. I was starting to freak out for a second because we where not around the computer to sync it with. After that I reset it by holding down the home and sleep buttons. When it restarted it said enter passcode. I went and found my brother. My brother put the passcode in and it worked fine.