For some reason whenever I connect iPod touch to my iTunes all the songs are greyed out and I can't select or play them on my computer. How do I sort it out as I've been unable to find a solution.

Assuming an ipod Touch is the same as an ipod it is because you have it in automatic sync. If you put it in manual sync they will not be grayed out anymore. With itunes up and running and the itouch recognized by itunes click on the itouch icon in the pane on the left. Click the Summary Tab if it is not already showing. At the bottom you will see a box that says Manually Manage Music. Check it and click OK or Save if it is there (been awhile since I did this). Hope this helps. Good Luck.