Q: I have an iPod mini that I want to give to my daughter. She’s asking if she can have it instead of buying an iPod shuffle. How will she be able to use my old iPod mini as the new owner? I have an iPod and iPhone so I really didn’t need the iPod mini, but I don’t want to mess up my iTunes account.
A: There is no direct association between your iPod mini and your iTunes Store account or your iTunes library beyond the content that is stored on the iPod itself. You can return any iPod back to its original out-of-the-box factory settings simply by connecting it to iTunes and selecting the “Restore” button which appears on the main iTunes Summary screen for that iPod.
This will erase everything on the iPod, effectively reformatting its hard drive, and return it back to its factory settings. When your daughter then connects the iPod mini to her computer, iTunes on her computer will go through the iPod Setup Assistant in the same way as if she had just purchased the iPod brand new, and she can then configure it and load her own content onto it.