What I do is this, go to Music on the XMB and you'll see USB Device. Instead of pressing X, press Triangle to display all and then X, then there are a ****load of folders. You want to go to "iPod_Control" -> "Music" -> "F00, etc". Then you get a bunch of random music files with random names. Just gotta go through every one and play.
Hmm, like most USB devices, it should come up. I have the older 60GB backwards-compatible version and it comes up every time on there.. Else, the only way to put it on the TV is if you buy the AV connection kit from Apple.
damn sucks it wont work. i have the 40gb ps3. anyone have the 40gb version that plugs their ipod to it? how much do the tv plugs run for the ipod