I think iTunes to iOS file sharing is a iOS 4.* feature (I'm not 100% sure, but that is what I think).
Alternate ways to get eBooks into Stanza.
a) Stanza desktop app (Stanza -> Tools -> Enable Sharing)
b) Calibre desktop app (Connect/Share button)
c) If the epub is availabe as a download from the web, take the http:// URL and change it to stanza:// and iPod Touch Safari will transfer control to Stanza and download the ebook.
d) Stanza iPod Touch app can connect with several on-line ebook sources and download ebooks directly from the web. (iPod Touch Stanza -> Get Books -> Catalog)
e) You could use DropBox Desktop app to store you epub ebooks, then Right-Click on the epub in the DropBox folder -> DropBox -> Copy Public Link. Then manually type the URL http:// link into iPod Touch Safari, but change the http:// to stanza:// You can do the same trick with any other cloud storage service that allows you to access the files via an http:// URL. While this is not easy, you could maybe simplify the URL transfer by emailing it to yourself, already edited from your desktop into stanza:// form. Still not trivial, but possible.
Through trial and error and some awesome folks on the forum here, I managed to make this work.
I have an iPod Touch 1st gen. Updated to 3.1.2 software yesterday. Since I can't use iBooks, I had to come up with another way to satisfy my love for reading books and merge it with my new hand-me-down iPod.
Downloaded Stanza from iTunes today, and then the Stanza desktop from their webpage. Going into the iPod Stanza I taped the "Get Books" button at the bottom, then the "Shared" button at the top, and then the "Edit" button to the right. Basically following the instructions they have in the FAQ on the Stanza webpage.
That will show you how to setup iPod so it'll wi-fi with your PC. When you open up the ePub doc on your PC, you can then link it by opening up the Stanza app on your iPod and save it to your Stanza library. Pretty awesome.
In the same FAQ there's a link that shows you how to convert other ebook formats using Calibre to convert other formats to ePub. This is a bit tricky but after some tinkering around through trial and error it works.