The latest version of iTunes is version 7.7.
I would update that first.
Also, if you have only just got your iPod, you may not have the latest software on it. It may have Firmware 1.1. This should still work fine, but you will not have some of the new functionality of the latest release, particularly the ability to load new applications. A download update to Firmware 2.0 cost �5.99
http://www.apple.com/uk/itunes/download/
http://www.apple.com/uk/ipodtouch/whatsnew.htm l