Yes, when SYNC is not in the mood to play the response to giving the voice command "USB" is it tells me there is no device.Did you try giving the voice command "USB?"
Please let me know how things are working after you try the Master Reset.
By playing around I did find out one way to get the iPod to work again... if I unplug the USB cord and turn the iPod off then plug it back in allowing SYNC to turn on the iPod communication is restored.
What I don't understand is why the car gets confused when it's turned off and back on again. A new symptom has developed, this week SYNC and the iPod stopped communicating as I was driving even. So far this had only been happening when I start the car after a series of short trips.
Good news on the phone at least, I used the phone button then navigated to the Bluetooth menu on the phone and was able to get the phone working again without all the complex set up stuff. For some reason the Bluetooth menu had turned itself off.
SYNC performed perfectly the first two months now it's become a bit high maintenance. I may try the reset but I have to psych myself up for it.