I appreciate your help. I accually had to manually get driver files from my device in order to fix the issues. But everything is now working correctly and I figured it out. To all others reading this discussion and having problems, here is what you do: (Note: This method only works with Windows 7 and iOS users)
1. Hit the Windows key+R. When the box pops up type "devmgmt.msc".
2. Scroll to Portable Devices, and expand it. Right click on "Apple iPod" and select "Update Driver"
3. Hit the option that says "Browse my computer for driver software". At the bottom select the option that says "Let me pick from a list of device drivers on my computer"
4. Above the "Next" and "Cancel" buttons is the option "Have Disk..." Click that and select "Browse..." Navigate to "C:\Program Files\Common Files\Apple\Mobile Device Support\Drivers"
5. In that folder should be a file called "usbaapl" Select that file and hit "Open"
6. Hit "OK" in the Install From Disk dialog box. Click "Next" in the Update Driver Software dialog box.
7. It should continue to do it's thing and then it will show up in iTunes. Problem solved.
Hope this helps all of you lost people with this problem. Cheers!