Itouch won't sync anything but purchased music

Hey everyone! I have had my ipod touch for about a year now, and lately I have been experiencing a lot of problems with it. I don't know if it's because of all the recent updates or what. My number one issue is that it won't sync music that I haven't purchased. I don't want to pay a lot of money for songs that I have on CDs already, it just isn't worth it. I can drag files to my itunes from a jumpdrive/import a CD no problem, the songs show up on my library. The place they don't show up is on my itouch. When it syncs, I can click on a tab that shows me my music, but a lot of it is grayed out even though it is on my itouch. I am not able to fill the circle allowing my itouch to sync any particular song, it's really confusing. I am trying to avoid restoring it, but if it comes down to it I will do that. I was thinking of possibly selling it to buy an ipod classic because those seem to be easier to work with. Any suggestions on what I should do would be much appreciated, thank you!! 🙂