I'm guessing this is a continuation of
this post, so I'll continue.
If iTunes is asking you for a sim card for an iPod, then your iTunes has a problem. Do you have iTunes 8? You should have iTunes 8. If that wont fix it, reinstall iTunes. If that still doesn't work, try using a different computer to register the device. If that still will not work, try returning it for a different iPod.
P.S.
PLEASE keep your responses in the same thread!
Do not make new threads to try to continue the conversation.