Renaming the iPod is easy see this Apple support Article.
When you connect the iPod to iTunes, it will prompt you to Restore, which means it wil erase the iPod to blank and setup the iPod as at Factory settings, ie no music and data.
After the Restore it will also prompt you for a new name for the iPod.
See this Apple Support Article on Restoring, you may have to login as admin, if you are using a Mac.
Have a nice day!