Ok i am using iTunes 7.7 running on Win XP Pro.
Earlier I was running itunes 220.127.116.11 I was getting the same error and though maybe if I upgrade it will go. but it didnt!
We all know there is a discussion going on on Apple.com support but it has lead nowhere!
Please anyone! What is wrong? How do I fix the issue. I cannot use my iPhone without iTunes! It just doesnt sync and shows no options! See the pic. No arrow beside iPhone and this is where it gives the above error!