The first step in troubleshooting your problem is to check your Windows Services to see if the Apple Mobile Device service is running:
- Go to the Start Menu, and select 'Run...'
- In the dialog box that appears, type "services.msc" and click the 'OK' button.
- A new window should appear named "Services" on the title bar at the top of the window.
- In the right pane of this window, you should see a list of all Services installed in your copy of Windows (if you click on the "Name" column heading, you can see the Services in alphabetical order, if not already in that order).
- You should see a Service named "Apple Mobile Device" in the list.
- To tell if the service is running, look in the "Status" column next to Apple Mobile Device. If it says "Started", the service is running. If the "Status" column is blank next to Apple Mobile Device, then the service is not running.
- If the service is not running, right-click on the Apple Mobile Device service and select "Start" from the menu that appears.
- You should get a status bar showing that the service is starting, and once complete, the status next to Apple Mobile Device should read "Started".
Assuming all of this worked, you should now try to connect your iPod touch to your PC and see what happens. Hopefully, this eliminates the error message that you were receiving.
If you are still having problems, the only other idea that I would have is to reinstall iTunes. But you may want to wait for others to provide input before taking that step.
Hope this helps.
Regards-
BPT