Ipad will not restore in Recovery Mode due to Passcode

Hi There, my 9 got a new ipad 2 for xmas and he has forgotten his passcode.
I have put the Ipad in recovery mode and connected to itunes but right at the end it states ipad cannot connect to itunes because of the passcode.
Ive tried find my iphone and erase but it states the ipad is offline even though wifi is activated.
Is there a way to reset the Ipad at all as recovery mode reset is not working.
And no its never been connected to a pc as it was 2 hours old... any help would be awesome..

Recovery Mode Step by Step
1. Hold Sleep/Wake button down and slide to turn off iPad
2. Turn on computer and launch iTune (make sure you have the latest version of iTune)
3. Plug USB cable into computer's USB port
4. Hold Home button down and plug the other end of cable into docking port. Do not release button until you see picture of iTune and plug.
5. Release Home button.
On Computer
6. iTune has detected iPad in recovery mode. You must restore this iPad before it can be used with iTune.
7. iPad Recovery Mode on computer screen
8. Select "Restore iPad"...
9. Select "Restore and Update"
10. Extracting Software.
11. Preparing iPad for restore.
12. Waiting for iPad.
13. Verifying iPad restore...
14.Restoring iPad software.
15. Verifying iPad software.
16. Verifying iPad Restore...
17. Restoring iPad firmware...
18. Your iPad is restored to factory settings; keep iPad connected to computer
19. Activate iPad
20. Enter Apple ID and Password
21. Continue
22. Welcome to Your New iPad
(a) Set up as new iPad   (b) Restore from this backup (select from list of backups)
23. Restore from this backup
24. Continue
25. Restoring iPad from backup
26. The settings of your iPad have been restore; keep iPad connected to computer
27. Syncing iPad (Step 1 to 5)
28. Preparing apps to sync
29. Copying 1 of 9
30. Sync apps, movies and music to iPad
31. Finishing syncing
32. Eject iPad

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    I updated from ios 5.0.1 to 5.1. Midway through the update itunes crashed. I got it all working again and ever since I have been stuck in a recovery loop. DFU mode works fine, but when I go into recovery mode (yes I am doing it right, yes I have tried pwning, tinyumbrella, etc.) it still just gives me a white screen (I am not getting the plug arrow and itunes icon screen that shows up when you are in recovery mode). I am a huge fan of hacking, mods, and jbs, BUT have never done any on the iPad, (found it pointless).. nevertheless, I am stuck thanks to apple in a white screen and a nonworking iPad. If anyone has any ideas that does not include jbs, updating, restoring, restoring with internet off, restoring in DFU, I would gladly appreciate it. I would take it to the apple store but it was a friends and I didn't purchase it. My friend had the issue formerly and they had no idea what to do at apple (they usually try DFU, restore, and then have nothing else to tell you.

    There's a whole lot to read in your post, and frankly I have not read it all.
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    On a Mac: In the Apple () menu, choose Software Update. Install all available updates.
    On a Windows PC: Go to the Microsoft Windows Update page.
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    Temporarily disable or uninstall your security software.
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    Go into Recovery Mode per the instructions here.

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    1. iOS- Forgotten passcode or device disabled after entering wrong passcode
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    3. Restoring iPod touch after forgotten passcode
    4. What to Do If You've Forgotten Your iPhone's Passcode
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                  * If you cannot turn off the device using the slider, press and hold the
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    If you don't see the "Connect to iTunes" screen, try these steps again. If you see the "Connect to iTunes" screen but the device does not appear in iTunes, see this article and its related links.
    Additional Information:
    If you have a problem getting into recovery mode then try: RecBoot: Easy Way to Put iPhone into Recovery Mode.
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    Try:
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    How to put iPod touch / iPhone into DFU mode « Karthik's scribblings
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    Reload the current iTunes onto your computer from
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