I've never tried it your way lilstewart92, but if you connect it up after enabling disc use, doesn't that merely allow you to retrieve them through finder, (once all hidden folders are unhidden)? A friend of mine had no music on his drive and a 10GB 2G iPod connected to his iBook G3, set to manually manage. He could play them off the iPod through iTunes, but couldn't drag them to his library using iTunes. We got hold of third party software to enable him to copy them over and them format the iPod to start from scratch with what he actually wanted on there.
After enabling disk use, what are you saying should be done next?😕