Restore doesn't work on iPod nano 6th generation

I am trying to put my iPod nano back to restore on iTunes, and it asks for my pw which isn't the same as my Apple ID and pw. I am really stuck. please advise?

torinta wrote:
the nano screen comes up with a message 'do not disconnect'.
Do not reset your iPod if…
If your iPod is connected to a computer and displays any of the  following messages, you should eject the iPod from  within iTunes instead of resetting it:
Connected. Eject before disconnecting
Sync in Progress. Please wait…
Do not disconnect
Tip:  Check out  this helpful movie, too. ( http://support.apple.com/kb/HT1320?viewlocale=en_US )
Try the below steps :
If you can see your iPod in windows explorer on your My Computer the Right click on your iPod and Format it in Fat32 Format once it is formatted completely remove it from your computer and then reconnect it and open iTunes on your computer and Restore it using iTunes and if your iPod is not appearing in iTunes then Put your iPod in disk mode by referring the Above steps and then try to Restore your iPod to Factory settings.

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