Windows 7 - iTunes 9.0.1.8 freezes on iPod Nano g3 connect

Hi Gregg, when the ipod is connected to your system you should be able to hear 2 distinct sounds, the first sound is the generic usb driver seeing the ipod as a external drive as you have identified. Then the second sound is the actual "APPLE MOBILE DEVICE USB DRIVER" that kicks in and now will recognise the ipod. I want to set up some screenshots for you.
The first is the actual device manager, the second will show you the apple mobile device.
Here they are.

Attached is my diagnostic log.
I want you to disable autosync and connect your ipod, then launch itunes and then run the diagnostic.
Here is my log with screenshots
Microsoft Windows 7 x64 Ultimate Edition (Build 7600)
System manufacturer System Product Name
iTunes 9.0.2.25
QuickTime 7.6.4
FairPlay 1.5.23
Apple Application Support 1.0.1
iPod Updater Library 9.0d11
CD Driver 2.2.0.1
CD Driver DLL 2.1.1.1
Apple Mobile Device 2.6.0.32
Apple Mobile Device Driver 1.45.0.0
Bonjour 1.0.6.2 (118.5)
iTunes Serial Number 08DD4CEEB2BB6E0B
Current user is not an administrator.
The current local date and time is 2009-11-09 16:52:05.
iTunes is not running in safe mode.
Video Display Information
ATI Technologies Inc., ATI Radeon HD 3300 Graphics
　
**** External Plug-ins Information ****
No external plug-ins installed.
Genius ID: 4e3066b6b87b71d49235bd0b27223ca7
The drive F: Slimtype eSAU208 2 Rev ML05 is a USB 2 device.
**** Network Connectivity Tests ****
Network Adapter Information
Adapter Name: {4A438CA0-B47E-47E0-9E7A-AB1AE2A672C6}
Description: Atheros AR8121/AR8113/AR8114 PCI-E Ethernet Controller(NDIS6.20)
IP Address: 192.168.1.100
Subnet Mask: 255.255.255.0
Default Gateway: 192.168.1.1
DHCP Enabled: Yes
DHCP Server: 192.168.1.1
Lease Obtained: Mon Nov 09 08:42:54 2009
Lease Expires: Tue Nov 10 08:42:54 2009
DNS Servers: 65.32.5.111
65.32.5.111
65.32.5.112
Active Connection: LAN Connection
Connected: Yes
Online: Yes
Using Modem: No
Using LAN: Yes
Using Proxy: No
SSL 3.0 Support: Enabled
TLS 1.0 Support: Enabled
Firewall Information
Windows Firewall is on.
iTunes is enabled in Windows Firewall.
Connection attempt to Apple web site was successful.
Connection attempt to iTunes Store was successful.
Secure connection attempt to iTunes Store was successful.
Secure connection attempt to iPhone activation server was successful.
Last successful store access was 2009-11-09 16:46:39.
　
**** CD/DVD Drive Tests ****
LowerFilters: AnyDVD (6.5.9.5),
UpperFilters: GEARAspiWDM (2.2.0.1),
I: ELBY CLONEDRIVE, Rev 1.4
Drive is empty.
　
　
**** iPod/iPhone Connectivity Tests ****
iPodService 9.0.2.25 is currently running.
iTunesHelper is currently not running.
Apple Mobile Device service 2.50.39.0 is currently running.
Universal Serial Bus Controllers:
Standard Enhanced PCI to USB Host Controller. Device is working properly.
Standard Enhanced PCI to USB Host Controller. Device is working properly.
Standard OpenHCD USB Host Controller. Device is working properly.
Standard OpenHCD USB Host Controller. Device is working properly.
Standard OpenHCD USB Host Controller. Device is working properly.
Standard OpenHCD USB Host Controller. Device is working properly.
Standard OpenHCD USB Host Controller. Device is working properly.
ULi PCI to USB Open Host Controller. Device is working properly.
ULi USB 2.0 Enhanced Host Controller. Device is working properly.
FireWire (IEEE 1394) Host Controllers:
VIA 1394 OHCI Compliant Host Controller. Device is working properly.
Connected Device Information:
HP_Administrator’s iPhone, iPhone 3G running firmware version 3.1.2
Serial Number: 83833XP6Y7H
　
**** iPhone/iPod Touch Sync Tests ****
Sync tests completed successfully.

This is happening to me also. After installing Windows 7 64b, the sync of Ipod
freezes after a couple of songs transfers (normally, errror code 0xE8000065). Tried everything imaginable: Itunes reinstall, execute with compability to VIsta, energy safe mode off to USB ports/hubs, cable change, restore Ipod. I have a Acer Aspire M3641, lastest ITunes version, latest software on Ipod. Now my external drive also freezes
in the middle of a backup even if I'm not using a usb hub. Please Microsoft, Apple, Intel, whoever, WAKE UP !!! This is now a major problem. Please see Intel, Apple, Microsoft probe iPhone-Windows sync bug and Getting error 0xE8000065 when sync’ing? | Talk iPhone - iPhone News Blog and Forums and many more articles and claims. Aparently, a hardware problem of EHCI Usb's + Nvidia (and others) chipset triggered by instaling Windows 7...

Also, You encounter problems when you move data over USB from a Windows 7 or Windows Server 2008 R2-based computer that has an NVIDIA USB EHCI chipset and at least 4GB of RAM