*So my ipod was stolen. Is there anything I can do?*
Apple have no procedure to track, trace or block your iPod from use, the best thing you can do is inform your local police. If you have the serial number make sure that you have it quoted in the report. If your iPod was registered with Apple when you first got it, that will assist the Police in returning it to you should it ever be recovered. Depending on where the iPod was stolen from you may be able o claim it on your insurance (home contents for instance):
How to report lost or stolen Apple product?
*If not I want to get a new one, can i just transfer my itunes library to the new one?*
Yes you can.