https://bugs.launchpad.net/ubuntu/+source/libgpod/+bug/565971 describes the problem. With libgpod installed ipod shuffle 1g doesn't work. Without it, the ipod does work. It is apparently a udev rule that makes newer ipods work, makes the old ones not work. Reproducible: Always
If you remove /lib/udev/rules.d/90-libgpod.rules the ipod works again.
Try 0.8.0