Alright guys. I think I have fixed this problem for myself. I will tell you all I can to maybe help you solve it.
I was able to use a different CPU to try to test my iPod on to see if it would work.
*I tried multiple things at once so unfortunately I am unable to pinpoint exactly what fixed it. The fact is though I have synced my iPod after months of this blue screen problem.*
I use Windows Vista on my laptop. I solved this problem using my home CPU which runs Windows XP.
_Here's all I did between the last time I blue screened and now._
1. Reset iPod - Move hold button back and forth for 10 seconds then hold down menu and select button simultaneously.
2. Downloaded Vista problem solution from Windows.
http://www.microsoft.com/downloads/details.aspx?FamilyId=6A9FC712-F518-44AB-A11F -B6AA22525DEC&displaylang=en
3. +_-*ON XP COMPUTER*_+ went to
http://docs.info.apple.com/article.html?artnum=93716
-Initially, this CPU was recognizing my iPod in My Computer but not in iTunes.
-Followed steps starting from "Empty your Temp directory.." It might not be a bad idea to do the first two steps as well, but again, this is exactly what I did between iPod not working and iPod working. I did the steps "Empty..to Deleting.." without restarting my CPU, then restarted after the last step.
-Plugged my iPod into XP using CPU. Opened iTunes. It recognized my iPod. I clicked on the CHECK FOR UPDATES button that you see on the iPod front pagish thing in iTunes. It found that my software was out of date. I updated my software (could view progress on iPod)
-Disconnected iPod from XP CPU before syncing. - I would imagine that I could've synced my iPod on the CPU had I wanted to.
-Plugged iPod into Vista CPU on USB-port in back. iTunes recognized it as normal. Synced iPod as normal. After it was done syncing the "Do Not Disconnect" was still flashing on my iPod. I clicked the Eject iPod button in iTunes. Unplugged iPod.
I hope this helps. I realize that many of you may not have access to two CPU's, let less one with XP and one with Vista. I would suggest going through all of the steps in Step 3 of this message. I THINK what solved it was checking to see if my iPod drivers/whatever was out of date.
I'm certainly no expert. I've done a ton of things to try to fix this, including checking this thread numerous times. I have not plugged my iPod into my CPU since it fixed it. I'm not sure if I ever will. I have a wall charger that I will use instead.