HT4113 I got a iPod touch for Christmas it's asking for a passcode.

Should a new iPod Touch as for "Passcode" when you first turn it on?"

No.
From whom did you purchase it?
Try:
Place the iOS device in Recovery Mode and then connect to your computer and restore via iTunes. The iPod will be erased.
iOS: Wrong passcode results in red disabled screen                         
If recovery mode does not work try DFU mode.                        
How to put iPod touch / iPhone into DFU mode « Karthik's scribblings        
For how to restore:
iTunes: Restoring iOS software
If it then askes to enter an unknow Apple ID password return it
iCloud: Find My iPhone Activation Lock in iOS 7

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