IPod shuffle second generation not compatible with latest iTunes?

Question

Edit: re-reading this message I notice I say sync when talking about the iPod shuffles. Note that there is NO sync option shown in iTunes, only auto fill. Whenever I say sync regarding the shuffles, I mean auto fill. Syncing for the iPod Touches works fine though.
My sister recently got three iPod touches for her family and I helped set them up. I had no problems setting them up at all. It's when she brought me two iPod Shuffles (generation 2), one for my niece since she's not old enough to use an expensive iPod touch, where the headaches began. When choosing to synch, iTunes says it is waiting for the iPod and hangs for a good 2+ minutes. After it unfreezes, with no error messages, I see no changes, and no music is on the iPod (either of them).
The iTunes version is 8.1.1.10, which is the latest currently. Much to my horror Internet searches show a multitude of people claiming the iPod shuffles gen 1 and 2 do not properly work with the latest iTunes software! Is this true, and if so has Apple released any statement on the matter?
This program came to our rescue:
http://www.getsharepod.com/
I was successfully able to add music to the gen 2 iPod shuffles using that program, and indeed I know not to run both it and iTunes at the same time. iTunes was even able to display the tracks and play list I created with Sharepod, but the "fill" command still did the same thing: caused iTunes to hang for a time while saying it was waiting for the iPod and then continue as if it finished properly later... with no changes made at all. Even the check boxes for settings don't seem to save, but iTunes does properly name the devices. One is for one of my nephews and one is for my niece. Dragging songs to the iPod shuffle causes the same behavior of freezing for a time before unfreezing with no songs added to the device. I must note that by freeze I don't mean Windows says it's not responding. I can tab out and minimize/restore the program fine. All controls in the program such as clicking on play lists or trying to access the menus or clicking things do nothing until it unfreezes though. Since the iPod touches sync so incredibly quickly, I don't know if the program freezes during a normal sync.
After creating three separate libraries (my sister does not want each child having their own Windows name) and successfully showing the kids how to hold shift to choose a library when starting the program, each device is properly bound to each of my sister's family's names. As I said the iPod touches work perfectly so I am going to assume this is the dreaded incompatibly the latest software has with the iPod shuffle gen 2s?
Is there a fix for this issue or are we just stuck using third party software to deal with the iPod shuffles?
Message was edited by: Zunnoab
Message was edited by: Zunnoab

Answer 1

Thanks! SharePod really did the trick.
iTunes 8.1.1.10 wiped out my 2nd generation Shuffle. SharePod is the only way I can put songs in any more. From the looks of the forum I'm not the only one. Sure hope Apple figures it out soon!
** iPod/iPhone Connectivity Tests **
iPodService 8.1.1.10 is currently running.
iTunesHelper 8.1.1.10 is currently running.
Apple Mobile Device service 2.12.36.0 is currently running.
Universal Serial Bus Controllers:
Standard OpenHCD USB Host Controller. Device is working properly.
Standard Enhanced PCI to USB Host Controller. Device is working properly.
Connected Device Information:
KAI'S IPOD, iPod shuffle (2nd & 3rd Generation) running firmware version 1.0.4
** iPhone/iPod Touch Sync Tests **
No iPhone or iPod found.