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I hope Kenwood will release a firmware update to make the DNX7100 support the new iPods. I can't imagine Kenwood just letting the DNX7100 remain incompatible. I'll probably get a 80 GB iPod and hang on to my 160 GB for a while and see what Kenwood does.
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Just to follow up, my friend's 80 GB previous gen iPod displays album art fine. Annoying, but I guess I have to return the Classic and buy an older iPod. Guess I'll have to eat the restocking fee. :-(
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I just bought a Kenwood DNX7100 and KCA-ip300 iPod Cable. I have a 160 GB classic. It won't display album art, I just get load error. Has anyone else encountered this? I'm going to see if any of my friends have a prior gen iPod I can test. If that fixes it, I am going to return or sell the iPod Classic. I bought it purely for car use.