Renaming iPod and Resetting

*Before I sell it, I would like to delete my name*

Connect your iPod to your computer, when it appears in the iTunes source list click on it's name once to highlight it.
Click on it's its name again.
The text box will open for editing.
Type a new name.

Have a look here for more: How To Rename your iPod

*I may also reset the iPod - does this mean that the software reverts to the original and will then need to be updated?*

Np you should Restore it. Restoring will erase the iPod's hard drive, reload the software and put it back to default settings. Once the restore is complete follow the on screen instructions to name the iPod and automatically sync your songs and videos onto the fresh installation. Uncheck the box beside the sync automatically instruction and press Done, it will default to manual mode and the iPod will remain empty and the new owner can choose whatever setting they like after that: Restoring iPod to factory settings with iTunes 7