I restored and updated my iPod, but when I turned it on, it still says connect to iTunes

My brother just got an ipod for Christmas, and we told him not to put a passcode on it because he would forget... but he did it anyways and he did forget! He ended up disabling it trying to unlock it. It said ''Connect to iTunes." When I connected to iTunes, it said it was disabled and needed the passcode to do whatever,  but I held the top button and the home button down for ten seconds to Restart it because we don't know the passcode! It said to Restore and Update, so I did that. Now it's in Recovery mode... and I can't get past that part! I thought I had done it right, but when it turns back on, it still says connect to iTunes! Help??

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

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