I don't know what i did the other day but here's my situation.
I own a macbook - and only until recently did i like iTunes for handling all my music (this is because my music collection is over 50GB, and my HDD didn't have enough space - but a second hdd instead of the disc drive helped that).
Anyway - i added my huge collection of songs onto my iTunes. I renamed them to my liking.
With my iPod touch, i manually manage my music, and quite frankly i think i will sync them the if i ever get the chance to do it over again. With manually managing music - if i rename the songs on my ipod on itunes - they don't apply when i go to listen to them. I had a problem with it when i had 6 of the same artist, and an artist beginning with a different character than listed (i.e. Timbaland listed under F).
When i had all my music library on my Macbook's iTunes - i deleted the affected songs, and then i dragged and dropped the ones from my iTunes library straight into my iPod Touch. This somehow fixed the renaming situation and now my songs are properly renamed.
I hope this helps some of you guys.
It's also maybe worth noting that sometimes by default - Apple Groups By Album Artist in the settings.