No app store present on iPod Touch 4th gen and can't sync apps in iTunes, tried restoring/updating

I've tried everything I know to fix this problem with no luck so far, I'm hoping someone can help. Note that iTunes has been updated to the latest version (and my friend's computer is running Windows 7, if that helps at all).
My friend has an iPod Touch 4th generation. A while back he asked me to help him get apps onto the iPod, and I discovered that the App Store on the iPod itself was nowhere to be found, nor can he remember ever having one. In addition to this, he can't sync apps onto the iPod from within iTunes - the option to sync in the apps tab is greyed out. The music/movies/etc. sync just fine, however. At the time, his iPod had iOS 4.1.
After checking for parental restrictions in his iTunes and the iPod, I found that his iPod has a restrictions password set, which he doesn't know. His parents have no memory of setting restrictions and don't know the password, either.
I read online that the only way to remove the restrictions password is to restore the iPod, and since this seemed to be a good idea anyway due to the odd issue with iTunes refusing to sync apps, we restored the iPod and updated to iOS 5.1 today. Unfortunately, the App Store is still nowhere to be found, and we still can't sync apps in iTunes. The iPod still claims a restrictions password has been set as well.
I have checked and double-checked that no restrictions are set in iTunes preferences. My friend created a new iTunes account, so that shouldn't be the problem. While we're hoping to get both iTunes sync and the iPod App Store app working properly, right now he just wants to be able to get apps onto his iPod.
Does anyone have any ideas why his iPod didn't come with an App Store app, why it still doesn't have the Store after restoring, why iTunes won't sync apps, or why the restrictions password is still set after the restore? I've honestly run out of ideas as to how to fix this.
Before I posted this, I did a little more looking online about the restrictions password, which is apparently restored along with a backup. Neither of us were present during the restore (we had to leave for a couple of hours after the restore had been started), so I'm only asking this because I don't have his iPod or computer with me at the moment to test it myself - is there a way to manually cancel restoring from a backup during the process? If so, I need to restore the iPod a second time.
In the meantime, any ideas about my other three questions?
Thanks in advance for the help.
Edit: His iTunes account is authorized, by the way.

What exactly happmens when you try? Error message?

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