My ipod froze and even though i reset it still forzen what do i do

my ipod froze and even though i reset it still forzen and i don't know what to do. Also if i buy a new ipod touch and sycn and again with itunes will i still have my contacts from the frozen ipod??

put it into recovery mode
See here
http://www.apple.com/support/ipodtouch/assistant/restore/
Then restore
http://support.apple.com/kb/HT1414

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