Q: So now what? Resetting an iPod Touch

My daughter gave her ipod touch to her brother. She wiped it clean and now we see where it wants to connect the usb to the computer. However, when we plug it in all we see when we click on the device is the word iPod with a big white background. Doesn't show any stats about the device (like storage amount etc.) Our PC (HP w/Windows Vista) won't connect to the iTunes store anymore. Is that necessary? I have read different support articles on trying to re-establish my iTunes store connection but so far no luck. (I've uninstalled and reinstalled etc.) If anyone has any advice on that I'd appreciate it as well.