If you sync your iPod with your iTunes, you can manage your
library in both your iTunes and iPod by just sorting out the
playlists and library in iTunes only. Everytime you plug your iPod
to iTunes, it'll automatically mimick the iTunes library and
playlists.
To sync your iPod, plug it into your PC and when it appears on
iTunes, right click and select iPod Options. Here you can select
whether you want it to sync songs, photos, videos podcasts etc.
Each of this settings can be set individually. For example, I may
want it to sync only songs and podcasts, excluding videos and
photos. I go to the respective tabs and change the settings.
To see your songs by categories, click on browse on the top right
hand corner of iTunes. To create a basic playlist, click on the '+'
sign at the bottom left hand corner. To create a Smart Playlist
which updates itself according to your settings, hold Shift and
click the '+' sign, which you'll see has changed into a flower type
icon.