You own a license for the music on your iPod mini, but if you sell your iPod mini with music still on it, you run the risk of violating your iTunes user agreement. To prevent this, you should use the iTunes restore process to format your iPod mini to its factory default settings.
Instructions
1. Open iTunes to see if you need to update your iTunes software. If your software is out of date, iTunes displays a message asking if you would like to update. You must have iTunes 7.0 or higher to format your iPod mini.
2. Connect your iPod mini to your PC. Wait for your iPod mini to show up in your device list.
3. Select your iPod mini from the left sidebar. This displays configuration information about your iPod mini in the main iTunes window.
4. Click the "Restore" button. Choose to restore your iPod mini with the latest iPod software when your computer prompts you. This insures that your iPod mini is up to date before you sell it.
5. Follow the on-screen prompts through the second stage of the restore process. Leave the "Name" field and "Syncing Preferences" buttons blank. This allows your buyer to name the iPod mini and set her syncing preferences when she receives it.
6. Disconnect the device by clicking the "Eject" button next to your iPod mini in the left sidebar.
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