I thought I was getting ahead of the game by upgrading to iTunes 10 in advance of the release of iOS 4.1. I was awaiting the new iOS version in order to fix some slow down issues on my older iPhone 3G. This morning I decided it was time for the big upgrade and well it could've gone smoother.
After my phone was flattened with the new OS it refused to connect to iTunes. The reason for this was quite simple, the iPodService.exe would not start on my Windows XP SP3 computer. I did a quick search on the web and I discovered I was not the only person with this problem.
Luckily a fix was suggested. The process is as follows:
1. Uninstall iTunes 10
2. Install iTunes 9.2.1
3. After the install, copy the "C:\Program Files\iPod" folder to an alternate location.
4. Uninstall iTunes 9.2.1
5. Install iTunes 10
6. When the error pops up during installation, overwrite C:\Program Files\iPod with the previously copied folder.
7. The install will complete successfully and iTunes 10 will run normally.
Basically, the older version of iPodService.exe does not have the same bug as the one in iTunes 10. By using this procedure I was able to complete the upgrade of my phone to iOS 4.1 and get it out of the bricked state it was in. No word yet on when Apple will be providing a fix but they are looking into it.
Note: Friends of mine who sync their iPhone to a Mac do not have this problem with iTunes 10.