See this ->
iPod: Changing the display language
"a - Scroll down to the last menu option but don't select it.
b - Scroll up one menu item. This should be Settings.
c - Press the Center (Select) button. This takes you to the Settings menu.
d - Scroll down to the last menu option but don't select it; in English, this is the "Reset All Settings" option.
e - Scroll up to the third menu item from the bottom one. This should be Language.
f - Press the Center button to select Language.
g - Select your preferred language from the list."