For all of your student iPods, you'll probably want to do a Restore and Update. This will erase all content from the iPod and install the new OS.
After updating all of them, you would then be able to start "setting up the rules" for playlists and photo albums for each of the iPods.
In the video you'll learn the steps you'll need to take to quickly update your iPods.
I DO NOT recommend this method for your personal iPhone or iPod touch. For your personal device, just do the Update, but NOT the Restore.