Check for obstructions that can be causing the iPod not to fit in the dock. Debris on the connector can cause problems. Give the connectors a wipe with a soft, dry cloth. Try different adapters if the Apple product or iLuv is new, and you've not used them together before. There will be adapters for specific Apple products that came in the iLuv's packaging.
Remove the iPod and reseat it again if the device isn't recognized by the iLuv. Make sure the Apple device works properly by running through some functions, and then placing it in the dock. Try rebooting the iPod and then place it in the iLuv's dock.
Switch the iPod's radio off if you'd like the iLuv to charge it. The charging will not take place while the Apple device's radio is on. Use the iLuv's radio, instead.
Decrease the iLuv's volume if sound seems distorted. Don't forget the iPod's volume, too. Try setting the Apple device's volume to about 75 percent and then control the master volume from the iLuv.