Yes, to use PlugPlayer on Android to control an iPod you will need a UPnP renderer app (like PlugPlayer) running on it. The quick steps are:
1. Install PlugPlayer on the iPod, start it
2. In the device settings for the built-in renderer (press the blue > button), turn on "allow control"
3. Run PlugPlayer on the Android phone, it should discover the iPod automatically.