Re-Set a disabled iPad that has never been connected to iTunes
Reset an iPad Never Synced with iTunes
Step 1
Disconnect the iPad from the computer, but leave the USB cable connected to the computer.
Step 2
Hold down the "Sleep/Wake" button for several seconds until a red slider appears. Move your finger across the slider to turn the iPad off.
Step 3
Connect the iPad to the computer while holding down the "Home" button to turn on the iPad.
Step 4
Release the "Home" button when you see a message that says, "Connect to iTunes."
Step 5
Launch iTunes. iTunes will alert you that it detects a device in Recovery Mode.
Step 6
Click "OK" and click "Restore" to reset the iPad.
Update: 2016Apple have closed this method with newer versions of iOS. People were using a reset to clear/wipe stolen iPads and iPhones, so it has been disabled completely.