Connect your iPod to your computer.
When iTunes launches, click on your device in the left hand pane.
On the Summary Page under Backup, make sure "Backup to this computer" is checked. (I don't trust iCloud...)
At the bottom of the summary page click Synch... iTunes will do a backup and then synch your library to your device.
On the summary page under Version click "Check for update"
If an update is available let iTunes download and install it.
The apps and music have to be in the iTunes luibray on whihc you do the update otherwise wyou wiill lose them. Synced photos have to be on the computer. The backup that iTunes makes does not include synced items like apps, music and synced photos. See: