I don't know why you're measuring continuity between channels and ground, but you ought to test with the voltmeter instead of the ohmmeter. See if it's safe to use the jack with the voltmeter; 20mV is the upper limit for safe us with headphones. Also, you can check for sound with crappy headphones to see if it works. Are you using BGs inside your iPod, or are you putting the caps in an external case, connecting with a mini-to-some kind of connector? Either way, here is the picture.
