iPod Touch 4th Gen Wrong Name on Windows

When I plug my iPod into the computer, it automatically shows me the 'What do you want to do?' dialog, and it lists the iPod with a name of "Sarah Elizabeth Canez". In my iPod's Settings -> General -> Name, it shows the correct name. In windows, I have tried to change the name under properties, but the field is locked. Any ideas?
Sounds like you don't know who "Sarah Elizabeth Canez" is...

That would be one result of buying a refurb iPod: It might still contain info about the previous owner.
Apple _should_ take care of clearing out that info, but sometimes happens, especially if you don't buy it directly from Apple.
If that is true, then your next step should be to restore the software. Follow these steps, which will completely erase the iPod, and restore to original factory condition.
So, where did that name come from?
I forgot to ask - is it _your_ name?
If that's your name, then it likely comes from your own address book, or where ever Windows retrieves user information, and simply used that name as the default (if you are the usual user of your PC.)

iTunes has a lot of other uses for your iPod. You can change the information that's stored on your iPod through iTunes.
And, after plugging in the iPod to your computer, and starting up iTunes, you can click on the iPod, where it shows up under the list of music, choose general information, and you can change Sarah Elizabeth Canez to something else, if you like.
Ah, to confirm, I have no idea who that is. It's not my name. And in iTunes, it comes up with the right name. Just thought I might be able to change the name that Windows gives it. Say, if I lost it, and someone found it, they (probably not) might plug it in to their computer to see who's it is, and it'd say Sarah Elizabeth Canez, and then assume it belongs to this person. Doesn't seem to be a real problem, though.
You said that your iPod is "brand new"...
How do you know that?
Just because it's a new model, that does not mean that someone else did not already purchase it, and return it for some reason.
And, the shop resold it to you as a new, sealed box...
If that name is NOT on your own computer somewhere, then it must have been on the iPod - probably the previous owner or user.

If you did not buy your iPod directly from Apple (at an Apple retail store, or through the online Apple store), then you really don't know if it is new, or a return.
It's not a really big deal, as you can restore it to original factory condition by plugging your 'new' iPod into your PC, with iTunes open. Click the Restore button in the device general info window in iTunes, and let that restore complete.

Try that restore.
After you try a restore, if Sarah Elizabeth Canez STILL appears, then that's on YOUR computer, and probably won't appear on anyone else's computer (other than the real Sarah Elizabeth Canez :D )