Restore Ipod factory settings.

Community Help: What happens when I restore factory settings? - Ipod Restore Factory Settings

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When you restore factory settings on your Ipod, note that this is not the same as updating your Ipod. Updating your ipod basically means updating the software on it or updating the information on it, while restoring factory settings removes everything on in completely, in other words everything is deleted and wiped clean. Music, photos, etc., will all be deleted. If you wish to restore factory settings, make sure you resave everything back to your computer first if you do not already have it backed up. Normally you never need to restore your ipod, there shouldn't be any reason to do this. The only time something like this is required is because you have rare situations like the ipod is having problems or errors, so something is corrupted on it and you need to reset it back to the factory condition.

As a side note, if you need a place to backup your music free, I recommend xdrive.com as they now offer 5 gigs of free storage. Its a good source to use for backing up your music, videos, or photos (I wouldn't store any critical documents or personal information remotely on the internet, but these things should be fine) in case your hard drive ever crashes or you need to get your music back.