Summarize this article in one sentence.
If this is the last computer that your iPod has synced with, it will be able to recognize your device without a password. This is possible with a locked iPod because the screen lock only protects the iPod interface itself; it doesn’t protect/encrypt any of the data inside, meaning you can still access it from your computer. This will clear its contents and restore all factory settings. Once you have successfully restored your device to its factory settings, re-sync to your computer and then apply a new password.

Summary:
Plug your iPod into your computer. Back up all your music. Reset your iPod. Sync your iPod.