Ipod Touch Help =/

This morning I turned on my Ipod Touch and got that screen that tells you to plug your ipod into iTunes. So I got up and had to install iTunes. Than I get a message from iTunes telling me it can't sync because the password lock is enabled on my ipod so now im stuck. My ipod is just stuck on the screen that tells you to plug it into itunes, but it wont connect to iTunes since the password is on it cause I can't unlock it. Help!

Go into DFU mode (hold pwr and home for 10 sec. then release pwr or something like that, look it up before you do it) then restore to 2.2.1 or whatever (I just put 3.0 GM (beta) on mine woot woot!)