Unfortunately none of these help with my problem. To date I have done the following:
Disabled all windows firewalls
Disabled real-time protection in MSE
Added all iTunes folders to the exception list in MSE
Added all .exe files for iTunes to the exception file list in MSE
Manually stopped the Microsoft Anit-Malware service
Still no luck The only way I can get my iTouch to sync is to remove MSE. I don't have this issue on any of my other pc's that I sync the same ipod to, just my main system.
Just wanted to confirm that HDRoadKing's experience with MSE matches my own almost exactly. I tried almost everything in your list above, but nothing would fix the inability to sync my iPhone 3GS. It was only after completely uninstalling MSE that the problem went away. I'm currently running Norton AV 2011 with no problems.
I encountered this problem several months ago so it's sad to see it hasn't been resolved yet.
Just an update. I saw where MS had released a new version of MSE, so I figured I'd give it a try. The new version is 2.1.1116.0 and so far seems to have resolved the issue. I'm now able to successfully sync my iTouch with my main system again. Hope this helps someone else.