After a couple hours of trying to figure out why I had no video, this is the solution that helped me. Thanks for posting this ampboy41.
I too was getting no video on the iPod source, and the still image on AUX-1 with a 6th gen iPod (160GB). Also could play video through AUX-1 with a 5.5 gen iPod by pressing play on the iPod when the still image appeared, but no other control from the iPod itself worked. Some people have mentioned renaming AUX-1 to iPod, but that does nothing. The unit has to be off to access the initial menu, and there you can set AUX-1 for iPod, which will grey out A