Can I put movies on my Ipod 2nd generation 4.2.1?

I have an Ipod Touch 2nd generation MC model. I tried last night to sync my ipod with a movie I just bought. My movie is now in my Itunes library after I uploaded the digital copy but when I tried to sync it, it said it couldn't be synced to this Ipod. Is that because my Ipod is too old? Is there another way I can put already purchased movies on my Ipod touch? Can I still buy a movie from Itunes and put it on my Ipod or will I be wasting my money. I wanted to give this Ipod to my preschooler with a bunch of apps and movies already loaded on it but I am not having much luck.