So here it goes again, went back to the local APPLE store got a WHITE 3rd gen iPad this time.
Previous attempts was also tried with iTune 10.6.1 as this time.
1) Prior to sync to PC (Windows 7 64-bit)
2) Cleared the cache and history in the preference in the iTune
3) Left the sync folder exactly where my iPad 2 is located
4) Left the iPod cache embedded in this picture folder alone **did this on purpose**
5) sync my 3rd gen as a restore of my iPad 2 and....
the sync predictably FAILED as in my previous efforts.
I wanted to keep all my APPs to be restored on this 3rd automatically that is why I tried the above method.
since that does not work.
1) restored my 3rd gen to original state.
2) Cleared the cache and history in the preference in the iTune
3) Copied a select folders from my picture folders (500 pics for sync testing) to a new partition in a new folder
4) Made sure that embedded iPod cache is deleted in the new folder location.
5) Reboot the PC and the 3rd gen as recommended.
6) Sync my 3rd gen as a new first time around iPad (as oppose to restore from iPad 2 backup)
7) Since this is iPad in a new setting an iCloud was automatically created,
So I deleted this iCloud account as directed
(Don't much care for this feature, once you get too comfortable and go over the FREE 5GB,
you'll be too reluctant to cancel or take the time/bandwidth to back-up locally IMO, but that's just me)
8) Waited 6 mins or so the 500 pics all transferred correctly.
I flip thru all the folders and pics and sure enough no misplaced pics, no corrupted pics, no blank white squares.
All 500 went thru.
9) Didn't want to celebrate too early, so I copied another 2000 pics onto the new folder location ......and SYNC.
10) spend the next 25 mins flipping and verify that all pics sync-ed, which it did.
so it worked for me.
two key items
a) when I previously try to use iPad as new device, I didn't realize an account is still created,
whether or not you opt to use iCloud.
b) previous attempts to sync the transfer was hella fast, TOO fast (like it was skipping thru).
and this time it was slower and more "delibrate"
so if it sync too fast it is telltale sign of an incorrect sync.
Lastly, I feel that other iPod/iPhone/1st/2nd gen iPad cannot share the same folder as 3rd gen iPad AND restoring from prior devices is a NO-NO.
(this is the source of all "evil")
Good Luck
now onwards with APPs and Video files.