*it has a little padlock that is locked next to where it says 300 songs how wvere many hours etc.*
Restoring returns the iPod to default settings such as automatic updating (when you accept the prompt to automatically add the content of your library). A lock symbol at the bottom of the screen and grey text when you look at the content and just indicates that the iPod is set to update automatically (sync). If you want to play the iPod songs through iTunes, delete songs from the iPod, drag songs from iTunes, add playlists to the iPod etc. you need to change the update setting to "manually manage songs and videos". The text will change from grey to black and everything will be directly accessible through iTunes:
Managing content manually on iPod
iPod 101: Fill 'er Up
Something to remember about using an iPod in manual mode is that the "Do Not Disconnect" message will remain on the display until you physically eject the device. In that case use the Safely Remove Hardware icon in the Windows system tray on the desktop and check this link for alternative methods:
Safely Disconnect IPod
