Hey guys! I was in the same boat as all of you, but I was sure their had to be a solution to this problem. I found a solution that worked for me! Ive got the Windows 7 64bit, and my ipod is sycning as we speak! Follow these steps.
1. Disconnect your iPod Shuffle from your PC
2. Press CTRL-ALT-DEL, start the Task-Manager, go to Processes and end the process for "ITunesHelper.exe" (this will prevent iTunes from starting when you re-connect the Shuffle.
3. Now, re-connect the iPod Shuffle - iTunes should NOT start by itself and you should be able to see your Shuffle within the list of your drives (My Computer.
4. Next, download SharePod from
http://www.getsharepod.com/download/ and extract the .zip file and start the Sharepod.exe
5. If everything works out, Sharepod will recognize your iPod Shuffle
6. Sharpod won't start if iTunes is open but it will work vice-versa. So, start iTunes NOW and keep Sharepod OPEN.
7. iTunes will re-detect your Shuffle but it will still be available as a hard-drive afterwards as long as you keep Sharepod OPEN. Detection can take up to 30 seconds so be patient.
8. Now go to the iPod Summary tab within iTunes and DESELECT "open itunes when this ipod is attached". Scroll down on the same page and also check the "enable disk use" checkbox. Click the contents tab, then the settings button and choose the amount of disk space to allocate. I chose 5MB. Click back to the settings tab and APPLY those changes.
9. Close iTunes WITHOUT ejecting the iPod.
10. Close Sharepod and simply disconnect your iPod Shuffle (i.e. pull it off the dock).
11. Reboot your computer. After the reboot ITunesHelper.exe will be running again you don't have to care about Sharepod or processes anymore. That is, you can delete sharepod if you want.
12. Simply connect your iPod to the PC as you used to do, open up iTunes and everything should work as it did back in the good old days.
NOTE: Don't eject the iPod from within iTunes going forward, simply disconnect it from the PC manually by pulling it off the dock yourself when you're done.
This solved my sync issues, and I hope it does for you too.