Is it locked, or off? if it's off, hold the power button (top button) until it shows the apple logo, and boots up. If it's locked, press the button on the top to unlock it, then, just slide the "slide to unlock" thing, and the passcode entry will show up, and you can put in the 4 diget password, and that should let itunes reconize it.

i have the same problem and im on the screen where it says ipod is disabled wait for 20989310min! i know the passcode. it just went like that when i connected it to computer. i dont have years to wait for use my ipod.

There is a easier way my friends. If you care about the stuff on your iTouch (E.g.: music, apps, games, videos, pictures) DO NOT PERFORM THIS. Since you said this is brand new, you should have no problem "jail-braking" (if that's even how you spell it) or even formatting it. Once you do this, everyhing will be erased on your iTouch and you can start brand new.

mine say's slide to power off