Can anyone help with ipod first-timer?

I just got from a friend an "ipod mini" I believe its called and cant for the life of me figure out how to get music on it! I tried from my Windows Media, that didn't work. So I downloaded itunes thinking maybe the music has to come from there, but that didn't work either. The "sync ipod" option under menu is grey and wont let me click on it. Can you only put music on an ipod that you buy from itunes? Another thing I noticed, when I plug any usb into my comp, it makes a little noise like it recognizes that something got plugged in. When I plug in the ipod, there is no noise, although the ipod's screen lights up. Could it be a faulty ipod and therefore the reason it was free? To add to that there is no software either, just the ipod its self and a bunch of cords. I'm ipod illiterate and need help!!