ipod is becoming obsolete?

I have an extensive music library on my ipod. Problem is my new car does not recognize it as a device when I plug it in to the USB input. The dealership guessed it was "old technology"and simply not compatible.

So I decided that the ipod wasn't going to work in my car, and I'd just use it in the house with my stereo system.... this always worked in the past, but now my stereo fails to recognize it as a device.

The only thing I have left is an old boom box that plays it just fine through the headphone jack.

I have tried several different USB cords, and they all behave the same.

Is it possible that some update I did with itunes has rendered my ipod obsolete for USB hookup?