Multiple issues with new IPod Nano+ ITunes 7

I am a formerly happy and loyal Apple user, but have recently become disenchanted due to what I see as bad faith actions.
I bought a new Ipod nano for my wife and brought it home to set up. When I plugged it in, it told me that I needed ITunes 7. Fair enough, I go up to download ITunes 7, only to be told that it won't work with OS 10.2.8 and that I need 10.3.9. There is nothing on the IPod packaging that indicates that I can only use ITunes 7. So as far as I can tell, Apple wants me to pay another $129 to buy a new OS, so that I can use my new ipod. It doesn't give me the option to use it with my existing setup. Is there a workaround so that I can use my ipod with my existing OS?
I started transferring my music collection to a PC to see if I could make it work there, since ITunes 7 works with Windows XP, which I have. This creates a new problem, since I can't seem to get the DRM protected music I bought on my Mac through ITunes to work on the PC. Can't get it to load onto the IPod, which is my whole intent in transferring it. My solution now is to not buy anything more from Itunes, since it will be a pain to transfer it when I change computers. I am not going to burn CDs for 400 songs, just to load them onto another computer. It seems like there are solutions on the web that can help you strip the DRM protection from songs, so I plan on using those to be able to listen to the music that I paid for.
Sor far, I have spent multiple hours trying to make things work. I have no interest in anything other than being able to listen to my music on our Ipods. While I understand the necessity to protect copyrights and limit illicit sharing, Apple has gotten a little too manipulative of a loyal customer base. Apple can count me in the formerly happy, now alienated group.
Mac G4 Mac OS X (10.2.x)

I just looked at one of the boxes for the new nano, and it has this on the back:
Requires Mac or PC; USB 2.0; Mac OS X v10.3.9

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Welcome to the Support Communities!
The article below may be able to help you with this issue.
Click on the link to see more details and screenshots.
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manuals.info.apple.com/MANUALS/1000/MA1624/en_US/ipod_nano_user_guide.pdf
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Worked really great.
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Welcome to the discussions,
WHY does it claim to be 8G but my capacity now says its just 6.83
The size of you HD is calculated binary when it comes to use it, instead of decimal when companies want to advertise there products. 1 KB=1024Byte instead of 1000KB as advertised by the manufacturer. In your case this reduces the actual available space by the factor of 0.93 or approx. 7,4GB.
If you have an "other" section in your color bar showing the different types of data on your ipod, which is bigger than 500MB, this could be a sign of corrupt data caused by a sync that did not complete or copied damaged data. A restore will reduce the size to normal again.
Restoring: http://support.apple.com/kb/HT1414
If you restore your ipod, iTunes will install the newest firmware first and then add back your data and settings from your last backup if you choose to "restore from backup". Every backup is replaced by the following one, so make sure to include this folder in your backup routine in case you'll have to go back.
You can check the location and size of the backup folder for your ipod here:
Windows Vista and Windows 7: \Users\(username)\AppData\Roaming\Apple Computer\MobileSync\Backup\
copied from: About backups http://support.apple.com/kb/HT1766
Sorry, I can't answer your payment question, I have never used your kind of setup, maybe you can find something useful here: http://www.apple.com/support/itunes/

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I noticed this problem first on my Windows 7x64 i3 laptop... I'd rather it not happen. Knowing how helpful Apple has been in the past at actually solving Windows problems. You might consider uninstalling and just syncing to iCloud unless you have a lot of music. As for me, I'm uninstalling it again on my laptop.

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OK I am confused. You say your car stereo has a Windows formatted MP3 player? What does that mean exactly? That the car stereo can play MP3s off of mass storage devices plugged into its USB port?
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I previously used a Sony PSP as my portable music player, and so my music
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Bump

Multiple issues with new IPod Nano+ ITunes 7

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