Just copy some MP3 files to your flash drive and stick it in, select it when you pick a device, and you should be able to listen to the music that's on it. Microsoft did release an iPod update that lets you play music from iPods, you might have to download and install it first. My friend uses his 5th gen iPod Video 80GB with his 360 all the time (maybe the update isn't compatible with the 6th gen Touch models, I don't know). If your PC and 360 are on the same network, you can simply play music off of your PC, just enable Media Sharing in Windows Media Player 11 (XP) or Network and Sharing Center (Vista) and allow Xbox 360 to access.
