I tried unplugging. Interestingly, right after this, the iPod played through it fine. Though I didn't hear the relay click when I first started the iPod. But after I shut the 5006 off, using the standby button, there was the click of the relay. After that the iPod did not turn it on. So while unplugging and plugging it in (after more the 10 minutes), put the AVR in some mode the iPod could start it up from, turning it off put it back to where it wouldn't start again.
Bottom line is it is consistent with having the network standby set to "off", but I have confirmed again that it is set "On".
Something else I noticed is that when I start the iPod the AVR display doesn't change at all. It just shows a dash. But if I change the iPod volume, the display says "Net/USB" on one line and a number like 38 below it (volume number I assume). It holds this for a few moments before returning to the dash.
So again there is some sort of connection, but it doesn't turn it on all the way.
Also, as to resetting the MPU, how do you do that?