In Itunes, click on the name of your ipod to make it active, then click on the name again to and it should change to a box where you can rename it. Just like a file in Windows Explorer.
You can also rename it in Windows Explorer.
Don't think there's anything you can do about the sorting order.
iPod Video [5G 40GB, 3 x 5G 30GB] iPod mini [6GB] iPod Photo [5G 60GB]
iPod [3G, 2 x 20GB] iPod Original [1G 10GB] iPod Nano [1G 2GB 4GB] iPod Shuffle [1G 512MB]
iPod Junkyard iPod Video [5G 60GB] iPod Photo [4G 60GB] iPod Mini [2g 3 x 4gb] iPod [3G 10GB]
My name is Paul and I'm an Ipod Butcher