CD won't eject when iPod connected

[sopo]

I recently got one of the new 3rd generation iPods w/ a dock....I LOVE it, of course. However, it's created a rather frustrating problem.

Whenever my ipod is connected to the computer, I can't eject CDs from the drive. I've tried the "eject" action from the menu bar, the keyboard eject button, etc., but to no avail. The CD will unmount from the desktop but remain in the drive. The CD then must be manually re-mounted using Disk Utility. So far, the ony ways I've found to eject the CD is to reboot and eject it during startup or to disconnect the iPod after re-mounting the disk.

Am I the only one with this problem? Can anyone suggest a work-around?

I'm using an iMac G3 700 (slot loading), 786 megs RAM, OSX 10.2.6, iPod software 2.0.1.