Help! Advice needed re. setting up 'new' second hand ipod.

Briefly,I bought myself a refurbished ipod from a reputable company (the home screen button on my old one had stopped working). Received it this morning and have been trying to set it up. My DD said that if I click on the 'Restore from iTunes Backup' option during the set-up process,I can simply transfer my numerous tunes purchased fom iTunes on my old one to my new one. But I've hit a problem. When I move onto the next screen after that option,it shows a picture of a charger plug with an arrow pointing to a musical note motif,with iTunes written underneath it,and the words 'connect to iTunes' across the top of the screen. Does this mean I have to connect it to a computer to transfer my tunes? I don't have them backed up on a computer,my DD said that it wouldn't be necessary. Any advice,or am I stuffed?