Q: ipod touch 1st generation will not sync with itunes

Win7

See:

iOS: Device not recognized in iTunes for Windows

I would start with

Removing and reinstalling iTunes, QuickTime, and other software components for Windows Vista or Windows 7

or

Removing and Reinstalling iTunes, QuickTime, and other software components for Windows XP

Run this to help if it identifies the cause

iTunes for Windows: Device Sync Tests

Have you tried on another computer to help determine if you have a computer or iPod problem?

If you want, you can then update your iPod to iOS 3.1.3, the last update for the 1G iPod:

Connect the iPod to your computer and update via iTunes as far as your iPod model allows

iOS: How to update your iPhone, iPad, or iPod touch

A 1G iPod can go to iOS 2.2 via iTunes and iOS 3.1.3 via

Purchasing iOS 3.1 Software Update for iPod touch (1st generation)       

https://buy.itunes.apple.com/WebObjects/MZFinance.woa/wa/touchLegacyLandingPage