IPod Shuffle Not Recognized In Windows Or iTunes v7.0 - What Now?

Hello everyone,
I am having the same problem as many who have posted here. I have upgraded my software to iTunes v7.0.1.8. I also accepted the auto update for my iPod Shuffle - 512GB 1st Gen to v 1.44 (I believe). Of course, now my Shuffle is not recognized in iTunes and is only recognized in Windows for less than 5 seconds (as I have monitored it). I am listing below all of the actions I have taken today.
As none of these have worked, my question is now what? Does anyone have any other suggestions before I take the dreaded step of calling support? Any help is appreciated.
I am not happy with this upgrade issue at all. I expect much better from Apple.
Steps Already Taken:
1. Reset iPod.
2. Set Terminal Services to "Manual" and restarted my laptop PC.
3. Changed all USB Root Hub entries power management options to "Allow the computer to turn off this device to save power option" and rebooted.
4. Assigned my external hard drive a different letter as it was assigned to "E" and tech support documentation suggested I changed it - I changed it to "M".
5. I stopped the iPod Service via the Services and Application interface from My Computer/Manage, reattached the Shuffle, and started the iPod Service. The Shuffle was still not recognized.
6. I uninstalled iTunes 7.0.1.8, the Apple Software update and QuickTime. I deleted all temp directories; program files folders and all possible traces of all three pieces of this software. I also deleted my iTunes library. I reinstalled all of this software and re-built my Library. NONE OF THIS WORKED!
My 30GB Video iPod works fine and always has - it is only the shuffle for which I have this issue any only since the upgrade.
What do I do now? If no one has another fix, I will be forced to call Tech Support after an experience with them over a year ago I would almost rather throw this thing away!

qswh - I too cannot play the songs that are loaded on the shuffle. Additionally, I get a green & orange light when I plug it into a USB port and then I either get a blinking orange light or a solid orange light from there after.

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