iPod touch frustration.....ARRRRGH!!!!

I have an iPod touch that is about 3 years old and it's been great. I turned it on the other day to add something to the calendar and it's has defaulted to 1970 - it's like the time machine had transported it back to the time of funkadelic and rocket man. I plugged it into my Mac and it sent me a scary message about losing everything Gah!!!! I quickly unplugged it and now don't know what to do about it, I don't want to lose my music library and other goodies. Motorcycle man backed it up a few months ago, so I hope that if I hit the restore button in settings that I will be able to reload it with all my stuff. I am so compulexic that this has almost sent me into a technocoma. I wonder if my iPod is jealous of my love affair with my iPad, I have been spending a lot of time with it. HELP!!!!