I'm gonna bump this.
I see that there are several people who have experienced this issue, yet I can't seem to get it going.
The iPod is in disk mode but even if I reset it the Mac still dosen't see it. I've reset the iPod but still no good.
I can drag the iPod into the left-side frame of iTunes and it sticks, and I can transfer songs onto the mac from the iPod.
I cannot, however, get iTunes to recognize that an iPod is connected. If I go to ipod tab in the preferences window it says "No iPod Connected"