Haha. Dude. You can do that with any model of iPod's. I've been doing it ever since I had my 30b iPod video.
Ok, I have tryed this, I am on Windows 7 64 Bit, with iTunes 9.1, checked the "Manually Manage Music & Videos" box, synced, plugged it into Windows XP computer (iTunes 9.1). It did not give me that Dialog box, but it would NOT let me transfer anything over, and if tryed to sync, would prompt me that everything would be erased, and replaced with the content of this library.
-_- wtf... I've never even had any of these problems. All is I remember is just clicking manually manage music box when I FIRST plugged my iPod Touch into my computer. Now, I just take whatever music I please from anybodies library. I'll look a bit more into it. See what I can do to help...
after checking that box cont click sync, just drag the songs/videos that you want from the library to where it says your ipods name
Oh! Yes, of course, but this guide is about getting songs OFF of the iPod. Sorry for all the confusion! I knew about this, I thought you were saying you could use the same method to Rip songs off.