Are you sure your IPOD is marked to active? If you would've searched IPOD and USB Loader GX, you would've found this thread http://www.wiihacks.com/wiihacks-new...e-my-ipod.html where I give the following instructions:
This solved the other poster's issue.... I hope it helps you.If you guy's want you can try this, maybe it will help... this is windows 7 or vista, I haven't done it on XP.
After formatting in FAT32 Goto a Dos Prompt, type diskpart Enter
list disk [enter] -> note your usb disk number
select disk # [enter]
list partition [enter] -> note your partition number
select partition # [enter]