I have Windows XP Pro SP3. My solution was:
1. Go to
http://support.apple.com/kb/HT1478. In iTunes change your Ipod settings to "Enable Disk Use" in the Settings window tab. You will know this worked when you can see your Ipod as a disk in My Computer or Windows Explorer. HOWEVER, After doing this you will have to manually eject your Ipod each time you want to physically disconnect it from your computer. After you manually eject the Ipod you should NOT be able to see it as a disk in My Computer.
2. After ejecting the Ipod and unplugging it: If you want to reconnect it just plug it back in. Again you see see it as a disk drive in My Computer.
3. Also, if you haven't unplugged it yet after ejecting it; you can go to My Computer / View System Information / Hardware / Device Manager / Action / Scan for hardware changes (any device has to be selected). (I don't recommend this for some people -- they don't want to get in this deep into the computer settings.)
4. I never tried unplugging my USB mouse but this would probably have the same effect as doing Step #3 above.
HOPE THIS HELPS, IT WAS A REAL PAIN FOR ME TO FIGURE IT OUT.
Message was edited by: PackerCracker