I locked myself out of ipod touch 5 and it says connect to itunes but itunes will not reset my device, how can i reset it?

I locked myself out of my ipod touch 5th generation. I forgot the password so i tried everything i could think of until it said connect to itunes. When i put my ipod in recovery mode, i plugged my ipod into my computer with itunes. I click the restore button and it said extracting. When it finished doing that it started to restore/reset and stopped half way and returned to the restore screen. And anything i do it doesn't work. I even updated itunes.

Connect via cable to the computer that you use for sync.  From iTunes, select the iPad/iPod and then select the Summary tab.  Follow the on-screen directions for Restore and be sure to say "yes" to the backup.  You will be warned that all data (apps, music, movies, etc.) will be erased but, as the Restore finishes, you will be asked if you wish the contents of the backup to be copied to the iPad/iPod.  Again, say "yes."
At the end of the basic Restore, you will be asked if you wish to sync the iPad/iPod.  As before, say "yes."  Note that that sync selection will disappear and the Restore will end if you do not respond within a reasonable time.  If that happens, only the apps that are part of the IOS will appear on your device.  Corrective action is simple -  choose manual "Sync" from the bottom right of iTunes.
If you're unable to do the Restore (or it doesn't help), go into Recovery Mode per the instructions here.  You WILL lose all of your data (game scores, etc,) but, for the most part, you can redownload apps and music without being charged again.  Also, read this.

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