Hi Chris, I am having a related problem: I updated the ipod software back in late november and didn't see the problem immediately, but I have a few appliances that allow the IPOD to plug into it, one is a TEAC "hifi radio GR-10i", and a zip connect wireless transmitter (for battery water friendly speakers in my shower). For many years now I have used both of these guys with my ipod video 60G. After this software update when I plugged in the ipod to either of these devices it would say "FireWire connections are not supported."..."Press center key.." so I would, and was sad that the update seemed to break this functionality. Since then i've had problems where it is locking up (and staying on, ergo depleting the batteries)and other stability issues. In iTunes I thought they had a roll back the software update feature, but i've tried it's 'reset to factory defaults' and it doesn't downgrade me from 1.3, and the problem is now that the Firewire connections message is not poping up randomly, plugged in or not.
I have tried the Center+Menu reset as well and it came back asking for a Language and locked up...
I'm really needing to have my tunes working again, any and all help would be greately appreciated.