iTunes 7.6 Upgrade Install Fails - "iPod Service could not be installed."

My system:

Windows XP Pro with SP2

Current iTunes version: 7.5.0.20

What I did:

Downloaded latest install exe for iTunes (iTunesSetup.exe)
Ran exe from Start / Run

During the install I receive the following message: "Service 'iPodService' (iPod Service) could not be installed. Verify that you have suffient priliges to install system services."

Note: I am the system administrator.

I abort the install and it rolls back. I restart iTunes. At this time a message box pops up stating "Ipod Service. Could not delete service"

In services I go to iPod Services and it is set to 'Disabled' When I try to set the sevice to Automatic or Manual I can not do so and I get the message: "The specified servoce has been marked for deletion."

I restarted my computer and opened iTunes.

When I run diagnostics in iTunes the Diagnostics file is as follows:

Microsoft Windows XP Professional Service Pack 2 (Build 2600)
Gateway E-4000
iTunes 7.5.0.20
CD Driver 2.0.6.1
CD Driver DLL 2.0.6.2

Current user is an administrator.
The current local date and time is 2008-06-29 09:45:00.

Video Display Information:

NVIDIA GeForce4 MX 440

** iPod Connectivity Tests **

iPodService 7.5.0.20 is currently running.
iTunesHelper is currently not running.
Apple Mobile Device 1.14.0.0 is currently running.

Universal Serial Bus Controllers:

Intel(r) 82801BA/BAM USB Universal Host Controller - 2442
Intel(r) 82801BA/BAM USB Universal Host Controller - 2444
Intel(R) 82801DB/DBM USB Universal Host Controller - 24C2 . Device is working properly.
Intel(R) 82801DB/DBM USB Universal Host Controller - 24C4 . Device is working properly.
Intel(R) 82801DB/DBM USB Universal Host Controller - 24C7 . Device is working properly.
Intel PCI to USB Enhanced Host Controller. Device is working properly.

FireWire (IEEE 1394) Host Controllers:

OHCI Compliant IEEE 1394 Host Controller. Device is working properly.

Connected Device Information:

J (G:\), iPod nano running firmware version 1.3.1
Serial Number: 7R552929TJT
Bus Speed: 61440

So:

How do I get iTunes Helper to run again?

How do I get the iTunes update to version 7.6 to successfully install?

Thank you for your help.