Why doesn iTunes want me to pay with a Credit card when I have a gift card already redeemed?
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ah i think i know the problem, it did the same for me. all it probably is, is that the account has been accessed on a pc last and when you use it on your ipod you need confirm that the account is for use on that ipod. it should have just 2 numbers which it wants, just a couple of codes. get your parents to put in those 2 codes and then it will register it. then you should be able to purchase what you want with the money you have on there.
Where you have to select a type of credit card, select ‘none’ and it will take the money from your gift card