What does it mean when the capacity is in orange, because Itunes messed up, [stopped working properly] and now it says I only have one song on it, although it's still showing my other albums and songs when i open it up on the computer. I keep syncing it but so far nothing. Also, if i update my ipod software with the latest version will it erase the songs, because i just add music on it from the internet, i dont buy off itunes or anything.

Oi, copy the files to your PC? Reset it (should not erase anything) or restore it (yes you will loose ****)

How do I copy the files to my PC ?

Share Pod could do that

Or google iPod Touch to PC files

What Peep said is what you need to do. Find a way to transfer all of your files (download.com and search for ipod to PC), and then restore your iPod ONLY after all of your files are safe onto your computer.

iPod Control.