Yep swap it for a friend that has an ipod and say no re's for eternity then you keep his and tell him for the password and you make up a random one for your one hope it helps :)
My ipod is locked for a little over 21 million minutes....is there anyway too fix that without having to wait an eternity?
Take it to the shop and get it rebooted this happen to me and no matter what I tried or what people suggested when I had mine rebooted properly it hasn't done it since it don't cost much I think the man that done it for me charge me between 10 and 15 pounds and like I said its still going strong