Q: apple id playing up

Apps are locked to the account/Apple ID that purchased them. You have to log into that ID to update those apps.

If you can't recover use of that account and yo want to update those apps you will have to delete them and repurchase with the new ID

To reset your password for the original ID see:

If you forgot your Apple ID password - Apple Support

What do you mean by "it won't update it doesn't find any updates."?

To update iOS on the iPod:

The Settings>General>Software Update comes with iOS 5 and later.

Connect the iPod to your computer and update via iTunes as far as your iPod model allows

Update the iOS software on your iPhone, iPad, or iPod touch

A 1G iPod can go to iOS 2.2 via iTunes and iOS 3.1.3 via

Purchasing iOS 3.1 Software Update for iPod touch (1st generation)

https://buy.itunes.apple.com/WebObjects/MZFinance.woa/wa/touchLegacyLandingPage

- A 2G to 4.2.1. Requires iTunes version 10 or higher. If a Mac it requires OSX 10.5.8 or later.

- A 3G to 5.1.1  Requires iTunes version 10.5 or later

- A 4G to 6.1.6  Requires iTunes version 10.7 or later. For a Mac, that requires a Mac with OSX 10.6.8 or later

- A 5G to iOS 9 Requires iTunes 11.4 or later if you update via iTunes

- A 6G to iOS 9 Requires iTunes 12,3 or later if you update via iTunes. If A Mac you need 10.8.5 or latter. If a PC Win 7 or later

Identifying iPod models

Sounds like you have either a 3G iPod. Those can only go to 5.1.1 and they do not have cameras or you have a 4G iPod. They have cameras and can only go as high as 6.1.6.

Starting when iOS 7 was released, Apple now allows downloading the last compatible version of some apps (iOS 4.2.1 and later only)

Install the latest compatible version of an app on an earlier version of iOS or OS X

https://support.apple.com/en-us/HT201377

App Store: Downloading Older Versions of Apps

https://sites.google.com/site/appleclubfhs/support/advice-and-articles/app-store -downloading-older-versions-of-apps-ios

You first have to download the non-compatible version on your computer. Then when you try to purchase the version on your iPod you will be offered a compatible version if one exists.