It's not a firewall issue. I've completely shutdown the firewall and no difference.
I also have an application called, "Air Video Server" that allows me to stream my videos to my iPhone/iPad.
If I kill this process, close iTunes and restart the Apple Mobile Devices Service, I get a windows FAULT message during the restart. So, the service fails because of the error.
Then I start the service successfully and open iTunes and it finds all my devices and syncs successfully.
So, I'm going to disable the Air Video service temporarily (I use it all the time), and see if syncing works again.
I'll update this thread with the results after a few days of testing.