If I do a factory reset then restore, it restores with the password set to where it was when I backed up. As far as I can tell, that means I need to have the ipad password to use it.
If anyone has been able to do a restore but minus the password, then please explain here how you did it. (I am sure Apple wouldn't allow that as it would potentially defeat the point of password protection, although that might be different if you can only do a restore from the original computer or itunes account.)