Finally was able to solve it and a big thanks to Pab @ http://cnx.com/?p=1612 - this article and solution works perfectly.
Even though I didn't followed it as specified, it works, here is how (in my case):
- Already had a itunes x64 version downloaded
- downloaded and installed CCleaner.exe (get it from cnet downloads,a safe version)
- Unisntalled ITUNES using CCleaner
- I didn't clean the registry
- Restarted the system
- Installed iTunes, did a manual Sync via USB, unplugged USB
- DID NOT WORK
- I already knew about Firewall so I confirmed again that WIndows Firewall is off (why because...) my Antivirus - CA Security has a firewall running
- So I went ahead and switched off CA Security Firewall for this test
- Next, tried iTunes - DID NOT WORK
- I went back to that article - this time I decided to clean the registry using CCLEANER
- I thought I might have to uninst-reinst Itunes first and then registry cleanup but I thought whats the harm, I have a fresh Itunes anyway so lets just try registry cleanup
- Did a Reg Cleanup with CCleaner
- So after registry Cleanup via CCLEANER - I open Itunes (note: Antivirus firewall is off)
- after few seconds - IT WOOOOOOOOOOOOOOOORK
- tried Sync, it works over wifi - and WITHOUT MY PHONE PLUGGED INTO POWER - it just works (have to wait for few secs though in Itunes)
- So closed Itunes, restarted Itunes - after few seconds - it works fine
- Next enabled the Anitivirus firewall - and tried sync - it fails
- Disabled the firewall again - and it starts working again
Bottom Line
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Read that article - follow the instruction
Ensure about all your firewall - wondows and/or antivirus-based or any other if u have - and how to allow all apple apps to pass through it
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For me if I enable antivirus firewall it doesn't work, otherwise it does. Will find some remedy for that antivirus firewall but as of now am happy, I saw it working 🙂