Backup cannot be saved on this computer...

I am getting the problem "Backup cannot be saved on this computer." The first thing I did was uninstall itunes. And I uninstalled it exactly as described by apple on their website. I then went through and double checked to make sure that all apple files had been removed. Next I went through the process of deleting the "Apple Computer" folder in users\"username"\Appdata\Roaming as to make sure that there were no other backup files out there. I then reinstalled itunes. I then configured itunes to not automatically backup, so that I could manually initiate the backup.

When I plugged in my phone, I no longer get this Backup cannot be saved on computer error, but now it starts the backup but seems to just get stuck. In the status bar it says "Syncing 'iPhone' (Step 1 of 2) Backing Up". The bar itself is the scrolling black and white bar. Do I just need to leave it for a very long time? It does not seem to be backing up to me. I know backing up does take a long time, but I would think the process takes the most time on Step 2, not Step 1. Can anyone help? I feel itunes is getting hung up somewhere...