ANSWER:
The USB is not going to work with your iPod. It is intended to be used with a flash drive or external hard drive with a folder structure containing either .mp3 or .wma files.
REASON:
The way the USB works on the system is that it reads all the files and folders on the entire device and will say "reading" until it reads all the files and folders. This should only take a few seconds but if there is tons of files it may take longer.
Main problem: An iPod contains much more than just music files and folders - it contains an entire operating system. Worse, the operating system which the iPod uses is protected, keeping other devices except for iTunes from reading the music files.
SOLUTION:
You will need to use a flash drive or external hard drive with your USB. This device can only contain music, and the music must be organized into folders. Your iPod will not work. However, you can use Auxiliary input using a cable which both ends are 1/4" headphone jacks, one end going to the iPod and other plugged into your stereo.
Good Luck!
- Chris Proia
p.s. Here is the User Manual for your XDM6350 : http://www.dualav.com/support/manuals/xdm6350.pdf
I'm having the exact same problem. I see you posted this back in October. Have you been able to fix it?
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