First connect your ipod to your computer. When it's connected pull up Itunes if it isn't already up (Updating the program isn't a bad idea either).Select your ipod on the left hand column and make sure it's on the page tab called summary where it shows general information about your ipod. Find the button called restore and click it.Four options will come up. I'll list all four and you can decide for yourself which one will suit you best.Option one: Restores with same iPod Software version already on iPod.Option two: Not much different than the first one except it'll restore it even though a newer version is available.Option three: Restores with the latest iPod Software availableOption four: Not much different except it also updates the ipodWait until your Ipod is done restoring and correctly and eject it. Wa-la your Ipod is completely restored.
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