HUGE PROBLEM with MOTOROLA SLVR (with iTunes)....can't connect to computer

I got a Motorola SLVR a few weeks ago and I'm loving it.

Problem is today when I wanted to connect it
( I have Windows XP), it didn't work. The phone just kept on saying "Do not disconnect" but nothing is happening.

I've installed the latest version of iTunes, i made sure that i was on memory storage for my phone, and ive even turned it off, taken out the battery, and put it back together.

Whats wrong? 😟

(Music playing and phone still work fine....)

DELL Windows XP