A picture of a USB plug is on the screen with an arrow pointing to Itunes.  when I connect it to our pc, the device is locked and is asking for a security code.  I do not know the security code.

A USB plug picture is on my screen with an arrow pointing to ITunes.  When I connect the Ipod to my computer, it is locked and is asking for
a security code.  I do not know the security code.

Place the iPod in recovery mode and then restore it via iTunes.  For recovery mode see:
iPhone and iPod touch: Unable to update or restore

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