Here are certain things YOU can do to improve your photos in low light:
2) In low light or indoors, if possible, turn on artificial light. If you are in a room, turn on lights or use flash lights. If there is a flash on iPod, use it.
3) If you are shooting stationary items or very slow moving objects, put your iPod on some steady surface (instead of holding in hand) and that can eliminate blur in your photos.
4) Also, you can enhance photos with Picasa or similar software to some extent. There are many such software out there.
5) Not sure what kind of manual controls, iPod offers. If my iPhone5 is any clue, you can't do any thing to control iso, aperture or shutter speed. So except about tips, there isn't much you can do with your iPod.