Apple TV 2 and iTunes-Device cannot be found

I'd be grateful for any help and/or advice.
Whenever I connect my Apple TV2 via microUSB to my Windows 7 PC to restore, the message pop out "Device cannot be found". I downloaded 5.2 firmware and restored the apple TV firmware by pressing shift key and it restored it perfectly well. Whenever I connect the device to my TV it works fine as well however the iTune message still says "device cannot be found".
Looking through the forum it appears that a number of other ATV owners have similar problem since iTune 11 release. Some managed to resolve the problem by restoring firmware however others like me are unable to do so. Any help would be greatly appreciated.
Thanks

Hi I have same problem too.
Ihave windows 7 at my home desktop and latest version of iTunes. I bought this apple TV 2 from a friend of mine couple of days ago. It works perfectly fine when I plugged into my TV however the home sharing is still linked to my friend's email address so I tried to restore it by plugging into my iTune but meessage pops out everytime that device cannot be found. I tried re-installing as well however results remains the same i.e. device cannot be found.
Any help appreciated.
Please do let me know if you require additional information.

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