1. Go to your iTunes
2. Click the iTunes Store
3. In the top right cornor is your Apple ID, click the "Account" option.
4. Edit your Apple ID
5. Enter in your everyday email account (e.g. johnsmith@hotmail.com)
6. Click "Done"
7. It'll go to your info, to verify how you use your iTunes Account, go to the very bottom and click "Done"
8. Go to your iPod "Settings"
9. tap "iCloud"
10. Make sure your email shows up.
11. Your iCloud account is now verified.
12. Go back to "Settings"
13. Go to "Store"
14. Click "Apple ID:"
15. Sign Out
16. Enter in your email, and your Apple password. (Not your email password)
Note: You need to do the changes I've given you 12-16 in order to download your apps.