I daughter's iPod touch is password locked and authorized to computer that doesn't exist anymore. i want to set it up on my iTunes but it won't recognize it because of the failed password attempts. what can i do?

My daughter's ipod touch is password locked and attached to a computer that doesnt exist anymore. i want to authorize it to my computer itunes account but itunes wont even read it due to the password failure. what can i do?

That's by design. The password is designed to protect the user's information and cannot be circumvented. You can restore it to "new" condition though, and sync it to your computer. The iPod Touch's content will be securely erased by doing this.
Refer to iOS: Unable to update or restore. Follow the instructions exactly as written.

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