Restoring ipod touch without updating software
Apple doesn't release updates to the software that powers the i Pod as often as it does for the i Phone, but you should install i Pod operating system updates whenever they're released.
Restoring your i Pod erases all of its data and settings and returns it to the state it was in when you first got it.
After it's been restored, then you can update the operating system.
If you need to do this, sync your i Pod with i Tunes first.
Then read this article for step-by-step instructions on how to restore your i Pod.
Restoring an i Pod Touch Restoring an i Pod Classic, Shuffle, Nano, and Mini Community Q&A Does your i Pod sometimes get so messed up that a simple restart won't fix it, and getting an appointment at the Apple Store will take 2 weeks—only to have some genius tell you that you need to restore your i Pod?