I'm sorry, but I'm not trusting the faith of the Pioneer tech on that one. Plus, the 3GS may work, but the iPod Touch 3rd Gen doesn't. I don't know about the hardware on the iPhone 3GS, but I know the hardware changed a bit within the iPod Touch 3rd Gen.
If you truly have a 3rd Gen iPod Touch, 32gb, I'm really expecting you'll have problems. If not, then my only next assumption would be that the problem lies with mine being a 64gb...
It's not a functionality problem with my radio unit because it recognizes other iPods just fine, as stated in my opening email.
Either way, please follow