I just recently got my iTouch and when I plugged it into iTunes to sync my music, it said it was over capacity when there were 7 apps and 126 songs. Nothing else. So I tried restoring it thinking it was the iPod. It still said it was over capacity even with nothing in it. So I updated iTunes just in case. It still says it's over capacity. I don't know what to do so please help me
When the iPod is connected to your iTunes Library, look at the Device panes (tabs) and tell us what the various "capacity used" indicators say. The indicator is at the bottom of each pane, Summary, Podcasts, Music etc.
Then you (and we) can work out what is using up all that space.