Getting started, set up wizard says cannot install this hardware

My old 20gb iPod died after three years today so I went straight out and bought an 80gb clasic. When I got home and connect it the found new hardware wizard states; 'Cannot install this hardware, there was a problem installing this hardware, Apple iPod USB driver, an error occurred during the installation of this device, the system cannot find the file specified, click finish to close the wizard'
Any ideas people?

Are you using the latest version of iTunes? If you're using 7.3 or earlier, chances are the Classic will not install properly.

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