Is the Mac app open?
Mine gives me a grayed out “searching for shared books” if I don’t have the Stanza app on the Mac open. You mentioned in the last post that you were having trouble with the Stanza app on the Mac. When you open it, it will bounce up & down on the dock, and then appear to do nothing. What you have to do is make sure that you have clicked on the Stanza icon in the dock, and look at your menu on the top of the screen – it should be the Stanza menu. Go to “File” and “open file” (or just press command-O), and open whatever book you want to put on your iPod. Next, go to “Tools” in the Stanza menu, and make sure that “enable sharing” is checked. Then go back onto your iPod, and try going to shared books again.