iPod classic and iPod Touch 2nd Gen help ?

[Loobah]

i have an iPod touch 2nd generation , and i recently bought an iPod classic (the 160Gb one) but when i plug them both into with a blue&me dongle , they both go onto an 'accessory connected' mode - so this whats supposed to happen ? or all you supposed to be able to change the song from the ipod while its plugged in ?
i havent updates my blue&me software to the lastest one for fear that ill bugger my car up if it goes wrong haha

any advice ?