I want to use mods on modern warfare 2 on a offline profile. Of course i need some type of usb flash drive i have tried configuring it to my xbox but i get a error saying that their was a error performing that action. I will buy a actual Usb drive if i have to.

There may be a preventative measure on newer ones. That's a good thing anyway since if you were to format it, it would wipe everything including the OS which means it wouldn't be an iPod anymore. It would basically be a USB drive and there'd be no way to put the operating system back on it. Stick with normal USB drives for storage.