USB is supposed to be 5V or just below that. Maybe the USB power manager in the iPod doesn't like higher voltages?
Edit: I just looked at the
LTC4066 datasheet (PDF) and yeah, input voltage should be between 4.35 and 5.5. The absolute maximum continuous input voltage beyond which damage may occur is 6V.
Be careful, some people have blown USB charging capability. You can then still charge via Firewire but the iPod may think USB power is supplied all the time, which prevents it from shutting down.
Edit2: Also note that USB is supposed to supply up to 500 mA.