Sorry it didn't work for you. Have you tried doing the 'Erase Contents and Settings' from the iphone settings > general > reset menu? Basically reformats the phone back to factory settings.
Yesterday I reset the phone (as above)
Uninstalled iTunes, restarted and reinstalled.
Moved my iTunes folder to the desktop and started a new one.
Connected my phone to establish the sync (I switched off auto sync in prefs).
Ejected phone.
Copied my folders (music, games, apps and artwork) back into the new iTunes folder.
Rebuilt the database from the original XML file (file > import) then restarted.
Reconnected phone and synced music/photos.
Added apps one by one to my library and synced them a couple at a time.
Now I have everything I need on the phone and wont be plugging it back in until I see new firmware and itunes 7.8!!!
Bit of a joke really… on a plus side, MobileMe push, GPS, network signal etc are fine!!
Thanks Heckie,
I did all that as advised step-by-step by the Apple support guy, nothing seems to work.
The iPhone is OK, it connects to my iTunes on my work PC and on my wife's account on my Mac. There must be some other software conflicting on my account.
I found a solution for my problem, it was a problem with my /library/lockdown/ folder, for some reason I did not have the permission to read/write. After giving my self permissions to the folder it works like a charm again.
It is is in your users folder, next to documents, music and so on you have a library folder and inside that there is a Lockdown folder which you need read/write access to.
I created that Lockdown folder and my problem is solved, thank you very much, not even a couple of hours with Apple support people got me anywhere near a solution.
OMG! Changing the permissions solved all of my problems, too! I had just about given up and had made an appointment at the Genius Bar two days from now, which is too long to go without my iPhone. Now, if only I can figure out how to restore some of the content (photos, notes, etc.) I lost from the backup.