A 2G Shuffle can only be synced with one iTunes library at a time. So if you are trying to connect and use the Shuffle with a new computer/iTunes library, you'll need tor restore it before you can begin syncing or manualy adding content to it from the new library.
So go ahead and restore the iPod and then configure it for manual management. See this article for more details on configuring the shuffle for manual management.
And here is more assistance on restoring the Shuffle as well if need be.
Thank you for your response. I have restored the shuffle which has now been emptied and I have re-set the name. Unfortunately it does not allow me to manually add files.
The screen shows Autofill from : with drop down menu.
It gives settings which say:
Replace all items when autofilling
Choose items randomly
Choose higher rated items more often
I have managed to load a CD and move the contents into a playlist and onto the shuffle. I will have to wait until I want to add something further to see how it performs.
Hmmm... I see that you are using a 2G Shuffle. I don't believe you can manually manage the contents on a 1G or 2G iPod Touch. Sorry about that.
As you have already learned, I would set up one playlist that contains all of the music you would like to be on your iPod Shuffle. Whenever you want to make changes, simply add or remove songs to the playlist and then resync your Shuffle.