I bought my iPod Nano in 2006 and have only updated the software versions a few times, in fact I have no idea what's on there now.  I let the anti-virus lapse on the old laptop PC I used to use and stored my iTunes library on.  So, now I think that laptop has a virus.  Can a virus be transferred to an iPod?  

I have tried fully charging the iPod on other computers.  Now the screen displays the message "Use iTunes to restore"  in English, some German below that, and then some acryllic writing below that.  

Any ideas or suggestions?

Your ipod should be immune to virus', as it runs a version of the Mac OS (PC virus's aren't written for Mac OS, and visa-versa).  It does sound like you need to plug it into a computer with iTunes installed and restore the software.

Okay, when I bought the iPod I think I received a CD-rom for installation.  Do I need it again or is EVERYTHING available online?

plug it into I tunes itll prompt u to update etc unless Ipod is jacked

itunes will download and install the latest ipod software for you, just plug it in already.