Same problem on windows 7. Seems this is widespread but as this is often the case, problem is entirely neglected by the good people at Apple, so i'm afraid we're fxxx'd until an updated version of iTunes comes out. (this was in fact already the case with iTunes 11.1 and 11.1.1 did not address this problem).
Totally unacceptable to still face such problems on a version 11 of a 10+ year old software used by hundreds of millions of paying hardware customers if you ask me...
I had the same problem with iTunes 11.1.1.
The workaround is:
- Close any connection you have to the internet, eg. diable Wi-Fi, or unplug Ethernet cable
- Click on the Podcasts tab
- Make any changes you want to the settings on your iPod or iPhone
- Re-open your internet connection
Works for me and seems to work for quite a few others.
Hope this helps…