I've not had any problems mounting either of my ipods (mini and 4G). they are both FAT formated as yours are, and connected via USB.
How specifically are you mounting it? On my system, I have a simple fstab entry for the ipod that looks like this:
Code:
/dev/sdb2 /mnt/ipod vfat noauto,users 0 0
then mount by simply
mount /mnt/ipod (the users entry in the fstab allows non-root users to do this).
The "Do not disconnect" will display on mine like you said. This you need not worry about, just be sure that you always umount and wait for all write processes to finish before unplugging the USB cable. I also read somewhere that if you umount the ipod, then do a
modprobe -r usb-storage then the ipod will change over to "OK to Disconnect" This I have not bothered to try. They important thing to remember is to
always properly un-mount before disconnecting.
Hope that helps.