How to Erase a Fifth Generation IPod
Wiping clean a fifth generation iPod is an easy task. It will prepare the device to be either used again by another person, or to refill the device in the event of data corruption. All that is needed is a computer with iTunes, the iPod and the USB sync cable. This process can not be done manually.
Make sure the device has power. If it does not, the iPod will have to charge several minutes via the USB sync cable before the process will begin. When the device is ready, it will turn itself on and begin to sync.
Launch iTunes if it has not automatically opened. The information screen within iTunes should pop up automatically. If it does not, try disconnecting and reconnecting the sync cable. If that doesn't work, try another cable.
Click on the "Restore" button. You will see a window that says "Are you sure you want to restore the iPod to its factory settings? All of your songs and other data will be erased." Since you would like to erase, click "Restore."
Monitor the restore progress. During the first part, the activity will be on the screen in the form of a progress bar. After this completes, the iPod will show an Apple logo with a progress bar there. Do not disconnect the iPod at any time during this process, or damage to the device could result.
Follow the on screen instructions if you wish to restore the device for your own use once the restore completes. If you are just erasing the iPod, it is now safe to disconnect the device from the computer.