Ok so since we're all getting desperate. Here's a quote from another forum which someone else posted saying it fixed the issue. Again though, no guarantees as this isn't from some official source.
+"In Windows, some background processes can cause issues for other programs and processes. These conflicts can prevent applications such as iTunes and QuickTime Player from working correctly, opening, or even installing. You might be able to resolve these conflicts by disabling some items using the System Configuration Utility (MSCONFIG) in Windows XP. This utility is not included with Windows 2000.+
+Important: Disabling third-party System Services and Startup Items can prevent some software or OEM hardware on your computer from working correctly. For example, this can affect the CD/DVD control buttons on portable computers.+
+1. On the Start menu, click Run. A Run window (command prompt) appears.+
+2. Type msconfig in the Open field and click OK. The System Configuration Utility opens.+
+3. Click the General tab.+
+4. Select the "Selective Startup" option.+
+5. Deselect the "Load Startup Items" checkbox.+
+6. Click the Startup tab.+
+7. Select the "iTunesHelper" and "qttask" checkboxes in the list.+
+8. Click the Services tab.+
+9. Make sure that "Hide All Microsoft Services" is selected.+
+10. Click Disable All.+
+11. Select the iPodService checkbox in the list.+
+12. Click OK.+
+13. Click Restart.+
+If following these steps resolves the issue, you may want to use the System Configuration Utility to turn on the third-party System Services and Startup Items one or a few at a time (restarting your computer after turning on the item or items) to identify which System Service or Startup Item is causing the conflict. You can turn all of them back on by selecting the Normal Startup option under the General tab of the System Configuration Utility window, but please note that this may cause the issue to recur."+
Here's the source:
http://www.unexplained-mysteries.com/forum/index.php?showtopic=54707
