Create a new album. Tap Albums, tap 
, enter a name, then tap Save. Select photos and videos to add to the album, then tap Done.
Create a new album. Tap Albums, tap , enter a name, then tap Save. Select photos and videos to add to the album, then tap Done.
Note: Albums created on iPod touch aren’t synced back to your computer.
Add items to an existing album. While viewing thumbnails, tap Select, select items, tap Add To, then select the album.
Manage albums. While viewing your album list, tap Edit.
Rename an album: Select the album, then enter a new name.
Rearrange albums: Drag 
.
Delete an album: Tap 
.
Only albums created on iPod touch can be renamed or deleted.