Good news - Reformatted 1T Samsung tonight, restored in iTunes, copied RB, attached to computer and watched it suck the life out of my battery with a 2g load. Changed to a fresh battery, switched to a different USB port, and suddenly it works great. I transferred 24g with only a 5% change in battery. Returned to previous USB and tried to load 2g. TeraPod3 began losing battery power rapidly so i stopped the transfer. My USB port is bad. It's not the iPod failing to load, it's the USB failing to transfer the files.
I still don't know what step allowed me to load the chip externally. I've tried both manual load settings in iTunes on 5.5gens without luck. I have noticed that on occasion, iPod HD drives attached directly to the computer will recognise as an iPod. This has also occurred with SD chips. I never paid much attention to this, but now I am wondering if this occurs with the 5th gen only.