I can't help you with the USB connection, as I don't have a gigabeat and have never had a problem with my ipod being seen (Actually, my biggest trouble was that itunes kept trying to sync it even though I've never EVER used itunes for anything other than looking at my own podcast to see comments)
However, the backlight setting is *not* the sleep timer. The sleep timer is how long to wait before your Rockbox turns itself off (I use it every night, so the battery doesn't drain while I'm listening to it to fall asleep)
The backlight settings are in General Settings -> Display -> LCD Settings, and they all have "Backlight" in their names. I suggest checking out the Manual, which you can get to via a link in the left hand bar over there
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