This iPod cannot be used because the Apple Mobile Device service is not

I have a Dell 32 bit Windows XP and an iPod touch.
Recently I tried to sync my iPod but received the following error:

This iPod cannot be used because the Apple Mobile Device service is not started.

So I googled the error message and someone suggested that I go to My Computer>Manage>Services>Apple Mobile Device and manually start the service.
However when I tried to manually start the service, I got the following message:

Error 3: The system cannot find the path specified.

I tried reinstalling iTunes, but no help.