You can still use your Ipod, but connect it via USB. Sync will index the same way the Ipod does locally. I'm not sure on cover art on Sync 2, though. If it works, this would be the way to do it, if it doesn't, then you need to wait for the next car (with yet a newer version of Sync).
If you don't want to use your Ipod, any thumb drive will do - it only needs to be formatted in FAT32 (not NTFS), and your ID3 tags need to in order - because that's what Sync uses for indexing. No need to shell out for USB3 (at least for the in-car use), though it may be more convenient when copying to the drive.
- Gezzs likes this