Can you remind me what to look at on my daughters iPod to turn on cloud service so her photos port over?
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On the iPod touch: Go to Settings then at the top she may already be logged in to her Apple ID. If so, touch her name and on the next screen touch the "iCloud" setting. From there you'll be able to toggle on/off Photos. You want iCloud photos turned on and most people check "optimize iPhone storage".

If she is not logged in to her Apple ID under settings, you'll obviously want to do that first.