So I'm a little hesitant to post this because I'm sure a lot of people have figured this out but...
No need to buy an OEM $50 ipod cable.
Buy a $2.99 male-to-male audio cable at the store, and use your stock white ipod charging cable.
-Plug the male-to-male audio cable into your ipod and then into the pioneer usb/audio cable.
-Connect the ipod charging/syncing cable to the ipod, and then to the pioneer usb port.
Full audio/video/charging. Only tested on my 2g ipod touch.
Hope this helps one person save a couple bucks.