Can you have 2 versions of iTunes for old & new iPod????

A friend has bought a new iPod Nano, the latest Pink (4gb)slim version, and downloaded the new version of iTunes.
She has already got quite a few songs onto her new library and onto her iPod.
My question is will her sister's old iPod (white 20gb) be affected by the new iTunes, and will her library on her old iPod (approx 700 songs) be affected by the new software and how???
She doesn't want to lose her massive library of songs in one go.
What will happen if she plugs her iPod into the new software??
Cheers
Steve

What will happen if she plugs her iPod into the new software??
It will work just fine. Don't need (and shouldn't) use 2 different versions of iTunes.

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