When I try to connect I tunes says "This IPod cannot be used because Apple Mobile Device service is not started." What does this means?

I wanted to reset my device and delete everything in it. When I try to connect I tunes says "This IPod cannot be used because Apple Mobile Device service is not started". I have tried the reset all content but I couldn't remember the password. Actually, I don't remember that I had one. How can I reset and operate it the latest OS? Thanks! 

Do you have WinXP, Vista, 7? Or Mac OS X?
See here
http://support.apple.com/kb/ts1567

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