I know exactly where you're coming from. I've spent a couple of hours playing with mine.
Do you have your printer hooked up to a computer? What I ended up doing (and I'm on a PC, not a mac) was uninstalling all the printer software on the PC, rebooting my computer, rebooting my printer and router, then downloading and reinstalling the epson printer drivers. Mine had the option of installing the Epson connect and e-web print, which I have not installed.
What I'm wondering is if those two options (my printer model is XP410) interfere with air print...perhaps they put drivers or something on the printer that messes with the airprint communication. Since the epson connect promotes itself as a mobile printing solution, maybe it does something to the printer to interfere with airprint?
It has taken me a couple of hours to play with this, and I wish I had a quick 'press this button' fix but my printing seems to be working now. And my iPod even sees my printer now.