Resetting a password

I recently got a 2nd generation itouch on craigslist, and the person I bought it from didn't tell me it was passworded his post is now gone and I can not get him
My question is there a way to set it back to its original settings so I can create my own password and use my new toy, or I am stuck with a useless unit?

try to connect in recovery mode: _*http://support.apple.com/kb/HT1808*_.
JGG

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