Hello pdxhockeyfan,
Thanks for using Apple Support Communities.
I see from your post that you're trying to manually manage the content on your iPod touch, but you cannot do it as you're getting an error. Could the error instead be stating that you have iCloud Music Library enabled? If it is enabled on your iPod touch then you will not be able to manually manage the music through iTunes.
If you're a member of Apple Music or have an iTunes Match subscription, you have iCloud Music Library turned on. When you have iCloud Music Library turned on, you can't manually manage music. You can still manage videos using the steps below.
Move content from iTunes on your computer to your iPhone, iPad, or iPod touch - Apple Support
Take care.