Q: my ipod needs updated but when i go to settings/general, i dont have a software update to click...what do i do?

You can't, go to iOS 7 or higher. Only the 5G can go to iOS 7 or higher and that came initially with iOS 6 which had the Software Update in Settings.

To update                        

The Settings>General>Software Update comes with iOS 5 and later.

Connect the iPod to your computer and update via iTunes as far as your iPod model allows

iOS: How to update your iPhone, iPad, or iPod touch

A 1G iPod can go to iOS 2.2 via iTunes and iOS 3.1.3 via         

Purchasing iOS 3.1 Software Update for iPod touch (1st generation)                   

https://buy.itunes.apple.com/WebObjects/MZFinance.woa/wa/touchLegacyLandingPage               

- A 2G to 4.2.1. Requires iTunes version 10 or higher. If a Mac it requires OSX 10.5.8 or later.

- A 3G to 5.1.1  Requires iTunes version 10.5 or later

- A 4G to 6.1.6  Requires iTunes version 10.7 or later. For a Mac, that requires a Mac with OSX 10.6.8 or later

- A 5G to iOS 8 Requires iTunes 11.4 or later if you update via iTunes

Identifying iPod models                                                         

To get apps for your iPod:

Starting when iOS 7 was released, Apple now allows downloading the last compatible version of some apps (iOS 4.2.1 and later only)

App Store: Downloading Older Versions of Apps on iOS - Apple Club

App Store: Install the latest compatible version of an app

You first have to download the non-compatible version on your computer. Then when you try to purchase the version on your iPod you will be offered a compatible version if one exists.