IPod Touch no longer working with car Head Unit since update

Hi there, I have a problem with using my iPod Touch with my car's head unit.
I've been using my iPod Touch with the Alpine IDA X001 Head unit fitted in my car for the last 3 months without any problems, however I installed the latest software update for the Touch (v4.0) and now the head unit connects and then says no USB device. At first I thought it was the cable as the cable supplied with the head unit is pretty fragile, so I've replaced it with a new one but it still doesn't work.
I've tested with my iPod Nano and it works perfectly so its not a problem with the head unit or lead (I plugged the Touch in and it didn't work, plugged the Nano in and worked perfectly and then plugged the Touch in and didn't work).
Can anyone help or is it gonna be a case of Restoring the iPod Touch back to factory settings ????

I was also having this problem with my Kenwood car stereo. I went into the store and they did a complete restore. I didn't think it worked but the next time I plugged it into my usb to connect with my car stereo it worked. So you might try doing a restore.

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