I don't know if the type of USB device makes a difference. I'm using an Ipod shuffle as a storage device that registers in windows as a USB device, but is not detected in the USB loader. I tried both USB ports but it isn't working.
the list might be old, but some Ipod worked and other didn't.
http://wiki.gbatemp.net/wiki/USB_Devices_Compatibility_List
No. I don't have an actual USB so I was using this as a substitute.Don't you have another hard drive to test if your setup is working before trying with Ipod?