Navigating the iPod:
Use iPod's wheel, Select button (in the center of the wheel), and Menu button to go back and forth through iPod's menus and to select menu items. To select an item, use the wheel to scroll to the item, then press the Select button. If the item has a right arrow (>) next to it, selecting it leads to another list of choices. Press the Menu button to go back to the previous menu.

Information on how to record with the iPod can be found here