Trying to restore ipod from one that died. But restore from backup is greyed out in the itunes menu.

I have latest version of itunes on Mavericks, a brand new ipod nano, and I am trying to restore my old dead ipod from its last backup onto the new ipod. The previous (dead) ipod was inherited from my daughter and is called "Kim's ipod" and I didn't get the option to initialise with the same name when I first connected it to itunes. I suspect that might be the problem.

Restoring from backup is greyed out in the file menu.

This strikes me as a situation that shouldn't be too uncommon - I'm wondering what I am missing.

- How to restore a new ipod from the backup of a new one

- Why is the restore from backup option greyed out

- Or, how to reinitialise the ipod so that the new one can have the same name as the old one in order to back it up.

Or anything else that I might have missed. FYIY the new ipod is NOT in recovery mode.