After iTunes 7.6 update, iPhone is not recognized by iTunes

I plugged in iPhone after iTunes update and a dialog box popped up that says "An iPhone has been detected, but it could not be identified properly. Please disconnect and reconnect the iPhone, then try again."
Phone is 1.1.3 firmware (update earlier in week and all was working great).
I have wiped software, cleaned registry keys, and reinstalled iTunes on XP computer. I ran a restore process on the iPhone and bricked it. Installed iTunes on a backup Vista 64 Ultimate machine (iTunes works on this platform now, yay!) and restored the phone.
Still hosed on XP, however.

This is happening to me too, but I have an iTouch though. I guess I will try to restore it on another computer if it worked for you.

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