My podcasts show up "recently added" and under the "Podcasts" heading in the main menu. How did you get them onto your iPod? Did you check the "Sync" box in the Podcast tab when you had your iPod connected (and then resync the iPod)? Or did you just click and drag them onto the iPod? I sync them using the "Sync" checkbox and select "All unplayed episodes." I've never tried dragging them onto the iPod but that looks like it would work, though it might product unusual results (like what you saw).

Don't give up on podcasts because of this. Some of them are really interesting. I love the handful of blues podcasts I listen to each week. I save one for Thursday morning so I have something to listen to while I'm shlepping the viola on the subway.