My i touch wont let me in the itunes store. Keeps asking for my password.

I have a few issues going on...... My i touch is a few years old. The battery wont hold a charge, I can not plug it directly into the computer... not a strong enough charge.
I havent used it in about a year now. I found it this week, tried to use it...every thing works fine..... emails, home security alarm, games,photos, music.All good. Even did updates on apps. But i can not purchase any thing or get into the app store at all. I know my password is correct cause I tried an old one just to check. Different message came up ...wrong password. It  will not let me do any settings stuff or make any changes. I have tried every thing I can think of. Ive worked on this thing for 2 days now. 
It does not give any error message ...Just keeps asking for my itunes password over and over and over again.
PLEASE HELP !!!!!

- Reset all settings      
Go to Settings > General > Reset and tap Reset All Settings.
All your preferences and settings are reset. Information (such as contacts and calendars) and media (such as songs and videos) aren’t affected.
- Restore from backup. See:                                 
iOS: How to back up                                                                
- Restore to factory settings/new iOS device.             
If still problem, make an appointment at the Genius Bar of an Apple store since it appears you have a hardware problem.
  Apple Retail Store - Genius Bar                              

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