First off, I would like to say that if you stole this, return it, but, I will assume that you really did forget yuor password. Happens to the best of us
What I would try is putting it in DFU mode.
Plug your ipod
into the computer, and turn it off. hold the power button for 5 seconds, then hold the home button. Hold those two for 15 seconds. Then, release the power button but still hold the home button. After a bit of holding the home button you should get the connect to itunes screen. Simply open itunes and restore