How do I restore my iPod to factory settings but ensure that it is still at the

JiggyFlip

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the newest iOS 4? I have a 2nd gen and would like to sell it. It came with Apple's older software but I have since updated to iOS4. Is there a way to restore it (e.g. completely remove everything that I have) to factory settings and still keep iOS4 on the device? I am trying to sell it.
 
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