Try pressing the middle button, after the screen goes black let go and it should be reset back to factory. Make sure the hold switch is flipped off too. Install itunes first before hooking up the ipod to the computer, I made that mistake and it didn't locate it. If not visit apple's website to see what really is the problem. Could be a faulty ipod too.

switch the hold button to HOLD and then switch it back and then press the middle button and the menu button at the same time until the logo comes on and it will reset it. but one peace of advice don't buy anything from people you don't know especially kids of the street.

It's actually really simple. No it does not mean your ipod is stolen. I bought mine brand new and didn't know why it had the symbol. All it means is that you have your ipod set up to update immediately. Go into edit. Click preferences. Click on the ipod folder. Choose update manually. Then select ok. It will update it with this setting, then voila…The lock symbol is gone. Good luck!