Re: "Use iTunes to sync your iPhone, iPad, or iPod with your computer"

Perhaps you're selecting the wrong icon. Try clicking on the iPod icon that appears at the top of the iTunes window (once it appears). Make sure you can see the two screenshots I've included in my post and then you will understand where to look:

...and then you will see the Settings options:

dbano wrote:

Yesterday, an apple rep said it could not be done unless they were purchased from the apple store (ITUNES).

That information is wrong, pure and simple.

Glad you've got it sorted.