Chosen Solution

When i try to enter a text pass code on my iPod, the keyboard does not respond, essentially locking me out. Some of the buttons like the space bar and backspace respond, but do nothing, and the flashing blue cursor is not there.

Try a simple hard reboot first: press & hold (Power Button) + (Home Button) together for up to ~12 seconds then release. If the iPod did not restart by then, press once on Power Button to restart it.