Let me know if you guys have this issue. 1) Set a password for your ipod 2) Lock it 3) Type in incorrect passwords- like 10 attempts or so Eventually a message will come up saying: "iPhone is Disabled try again in 1 minute" I am pretty sure I bought an iPod Touch, not an iPhone . I know they have the same OS but I am a little disappointed to see apples lack of thoroughness in their programming. It seems very verizon wireless OS-esque. Does this problem occur for you guys?