New computer--do i erase ipod and sync with new itunes library?

I downloaded itunes on my ancient pc and that's where I synced my ipod. i finally put that pc out to pasture and now have a new laptop. i downloaded itunes to the new computer, and when i hooked up my ipod i got the message "the ipod is synced with another itunes library. Do you want to erase this ipod and sync with this itunes library?" So do I want to erase and sync or not? I'm scared I'm going to mess everything up if I erase it.
One more question: my daughter got a new ipod; once i figure out this syncing issue with my existing ipod, do I need to set up a new account for the new ipod, or can i sync it with the account i already have?
sorry for all the questions--I'm a newbie and want to get this right. Thanks for your help!

Hello. I recently had to restore my computer (as if it was new due to, to many viruses) Afterwards itunes was still there but the music i have on my ipod was not previously purchased through itunes but they were on my computer and placed in itunes library and sent to my ipod. Well after restoring my pc, itunes opened up when i connected my ipod and it asked me to update. So i updated to itunes 10. Now it is telling me that this ipod is registered to my fiance' and it is running off a different itunes library, and that I would either need to erase and sync to the new library in itunes 10, or transfer to itunes 10 library. I tried transfer and restarted itunes, but it just asked me the same questions again. It wouldnt let me create new place lists either. im scared to erase bc i have so many songs i wont remember what there all were to go back and download if it actually erases all my current songs or applications. I assumed when itunes updated to itunes 10, it would update with all my information. And although the ipod is registered in his name or however he did that, I also have sum form of account with apple/itunes because it uses my email address and my credit card during purchases for this ipod (his name is just there). i dont understand what I am suppose to do to fix this problem. These songs are still on my computer and the program where i downloaded them from but since i had to restore the whole computer, its like they are probably hidden files and arent being detected i guess. I really dont know. I have been reading and I see many ppl with the same issue. Any suggestions that wont cost me anything or a little of nuthing to resolve? I heard of Tansee Ipod Transfer but it charges you to move your files from your ipod, into a folder, to your computer, and then to be added to your itunes. Any suggestions would be appreciated.
Thanks...Lana

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