Itunes see's ipod but wont sync.

Ok so i bought a fifth generation ipod yesterday. it wouldnt work with my version of itunes so i downloaded 7.3. anyway when i plug it in it just blinks "do not disconnect" for hours at a time. itunes sees the ipod but wont sync with it. please help
Ipod Video   Windows XP  

While it is connected in iTunes, click on your iPod in the Source Frame under devices and then check the Summary tab in the frame to your right. At the bottom, under options, do you have it set to Manually Manage your music?

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