Second hand ipod

i bought an ipod of a friend but when it comes up on my pc it still says the name of the previous owner.

does anyone know or hav any ideas on how to change this?

I bought an iPOD photo and was able to change the name. It seems there are two ways. With iPOD updater, you can wipe it clean and at that time change the name. or when using iTunes, where it has the name listed on the left side, right click and change it there.

Someone told me that what i need to do is called a "restore" or "update" to erase all the songs, and stuff that is already on the ipod. This returns the ipod to it's factory settings so it can be erased or given to a friend.
I really don't understand what does he mean. Any help is much appreciated