How do you restore your iPod touch 3gen?

Well for any iPod you could plug it into your computer and when it comes up go to summary and click "Restore" it will be under "Update"

But if you don't have that computer with you, on your iPod touch, go to settings, then go to General, then go to Passcode Lock, then enter a/your Passcode, and switch on erase data. Then lock it and keep entering the wrong Passcode (this may take hours to get it to START restoring) 10 times. Then when you have it restored connect it to iTunes and their you have it.

But i would do the 1st on said because it is ALOT quicker and easier.