I'm having this issue as well, but only after I restart the iPad. If I don't restart, iTunes has no problem with it, but if I do, I get the "connect to iTunes" image on restart, then when I connect it to iTunes, it can't read the device and I have to restore; done this twice already, and now I'm afraid to restart. Loathe to go back to the store and start from scratch, but if I can't restart without his happening I'm not sure what else to do.