I am keeping this post short as I am working on the backend (upgrading things, yes again )

But if you ever run into this just like me, simply plug the USB-cable of your iPod directly into your computer, and not in an extension cable.

Ding - hardware connected
Dong - hardware disconnected
Ding - hardware connected
Dong - hardware disconnected

and so on. Itunes going crazy of course… as was Last.FM. I did the above… and now it works.

Darnit!