How to restore iPod

1. Ensure that you have an active Internet connection as new versions of iTunes and iPod Software may need to be downloaded to your computer.
   
   
2. Download and install the latest version of iTunes if you do not already have it installed.
   
   
3. Open iTunes, and then connect your iPod to your computer using the USB or FireWire cable that came with your iPod.
   
   
4. After a few moments, your iPod will appear in the Source panel in iTunes.
   
   
5. Select your iPod in the Source panel and you will see information about your iPod appear in the Summary tab of the main iTunes windows.
   
   
6. Click the Restore button. You will be prompted with one or more restore options that may prompt iTunes to automatically download the latest iPod Software. The 4 possible restore options are:
   
   
   • Restore Option 1: Restore - Restores with same iPod Software version already on iPod.
   • Restore Option 2: Use Same Version - Restores with same iPod Software version already on iPod even though a newer version is available.
   • Restore Option 3: Use Newest Version - Restores with the latest iPod Software available.
   • Restore Option 4: Restore and Update - Restores with the latest iPod Software available.
   
   
   
7. If you are using a Mac, a message will appear prompting you to enter an administrator’s name and password.
   
   
8. A progress bar will appear on the computer screen indicating that the first stage of the restore process has started. When this stage is completed, iTunes will present one of two messages on screen with instructions specific to the iPod model you are restoring.
   
   
   • Restore Instruction 1: Disconnect iPod and connect it to iPod Power Adapter (typically applies to older iPod models).
   • Restore Instruction 2: Leave iPod connected to computer to complete restore (typically applies newer iPod models).
   
   
   
9. During the stage 2 of the restore process, the iPod will show an Apple logo as well as a progress bar at the bottom of the display. It is critical that the iPod remains connected to the computer or iPod Power adapter during this stage. Note: The progress bar may be difficult to see since the backlight on the iPod display may be off.
   
   
10. After stage 2 of the restore process is complete and the iPod is connected to the computer, the iTunes Setup Assistant window will appear asking you to name your iPod and choose your syncing preferences similar to when you connected your iPod for the first time.

Well this is something I was searching for last 4 hours & thanks for this tip man.
You really saved my life.
I have my brothers ipod with me & i needed to restore it back to the normal state & was searching for how to do this.
Will try the things you mentioned & let you know if this works for me or not.
Thanks again.

can any body tell me how to reset my IPOD Offline????