Help required please. "Itunes can not read the contents of my iphone"

Greetings all,
I know this question has been asked before and I apologize for asking again but all the solutions provided don't seam to work for me, can anyone help me please.
I am receving the message: "Itunes can not read the contents of the iPhone. Go to the summary tab In iPhone Preferences and click restore torestore this Iphone to factory settings".
Now a little about my iphone, Itunes and my laptop and what steps i havealready tried.
I have an iPhone 4 running software 5.0
My itunes version is 10.5.0.142
I know these are not the most up to date versions but I have had this issue for almost 3 months now and updating the software back then was the first step I tried. I don’t believe updating to the latest will fix this issue as updating the last two times did nothing.
Every so often after starting Itunes, The program will stop responding and will require the three finger death kill (CTRL, ALT, DELETE) to open task manager to end the task of Itunes. Once it shuts down, I restart the iTunes and it runs smoothly, apart from not reading my iPhone.
When I run a diagnostic in itunes under the help tab, I get these fail messages:
Network Connectivity test: Secure link to Itunes store fail
Device connectivity test: Under support services: Itunes helper is not running. And under ports: No iPod, iPhone or iPad found.
Device Sync test: No iPod touch, iPhone or iPad found.
*See below for full diagnostic report*
I have restored back to factory settings twice.
I have shut down and restarted both my iPhone and laptop.
I am running Windows 7 32-bit on my laptop.
I am using ZoneAlarm as my fire wall, and have been disabling it when syncing my iPhone to prevent other error messages.
The iPhone is plugged into a genuine Iphone USB cable and is plugged into a USB port not a USB hub on my laptop, I have tried plugging it into all 4 USB ports and this issue still persist. The Cable is less then 5 months old, is not frayed or damaged in any way, have also borrowed 2 other cables from friends and still the same issue.
The iPhone does not even come up in windows explorer as a digital camera.
The iPhone is NOT jailbroken
I do not live close to a so called genius bar, however I have made the journey to them on 3 separate occasions last year when I first received my iPhone for a different issue, the so called genius's could not fix the problem so they just gave me a new (refurbished) iPhone, which did not extend my warranty. I will not be taking the iPhone back to them as I believe they can not resolve many issues, this is why I am reaching out to the power of the people in the wider apple community.
I have read in other forums about ifunbox and other programs for jail broken iPhones to isolate folders “iTunesDB” and "iTunesCDB" and delete them. If this is the issue is there a way to access these files through windows explorer as my iphone is not jailbroken.
I hope I have provided enough information and someone can help me fix this issue. If I have left anything out, please let me know. I thank everyone in advance for your patience and support.
Thanks
Hoggie27
FULL DIAGNOSITC REPORT
Microsoft Windows 7 Home Premium Edition Service Pack 1 (Build 7601)
Hewlett-Packard HP Pavilion dv6 Notebook PC
iTunes 10.5.0.142
QuickTime not available
FairPlay 1.13.35
Apple Application Support 2.1.5
iPod Updater Library 10.0d2
CD Driver 2.2.0.1
CD Driver DLL 2.1.1.1
Apple Mobile Device 4.0.0.96
Apple Mobile Device Driver 1.57.0.0
Bonjour 3.0.0.10 (333.10)
Gracenote SDK 1.9.3.494
Gracenote MusicID 1.9.3.106
Gracenote Submit 1.9.3.136
Gracenote DSP 1.9.3.44
iTunes Serial Number 001BAD14XXXXEA78
Current user is an administrator.
The current local date and time is 2011-11-16 10:04:53.
iTunes is not running in safe mode.
WebKit accelerated compositing is enabled.
HDCP is supported.
Core Media is supported.
Video Display Information
NVIDIA, NVIDIA GeForce GT 230M 
**** External Plug-ins Information ****
No external plug-ins installed.
The drive H: Vodafone  USB SCSI CD-ROM Rev  USB is a USB 1 device.
**** Network Connectivity Tests ****
Network Adapter Information
Adapter Name:    {97524DB0-B9DC-41DB-8AFA-0CE6938F7C95}
Description:    PC
IP Address:    (HAS BEEN REMOVED FOR PERSONAL REASONS)
Subnet Mask:    255.255.255.255
Default Gateway:    0.0.0.0
DHCP Enabled:    No
DHCP Server:   
Lease Obtained:    Thu Jan 01 11:00:00 1970
Lease Expires:    Thu Jan 01 11:00:00 1970
DNS Servers:    10.143.147.147
        10.143.147.148
Adapter Name:    {BFF0456E-DE42-4FEF-B1FA-1EA1C5EDEE42}
Description:    Vodafone Mobile Broadband Network Adapter (ZTE)
IP Address:    0.0.0.0
Subnet Mask:    0.0.0.0
Default Gateway:    0.0.0.0
DHCP Enabled:    No
DHCP Server:   
Lease Obtained:    Thu Jan 01 11:00:00 1970
Lease Expires:    Thu Jan 01 11:00:00 1970
DNS Servers:   
Adapter Name:    {D5511FFD-0CA8-4F62-B3CA-E90384FFCD03}
Description:    Broadcom 43225 802.11b/g/n
IP Address:    0.0.0.0
Subnet Mask:    0.0.0.0
Default Gateway:    0.0.0.0
DHCP Enabled:    Yes
DHCP Server:   
Lease Obtained:    Thu Jan 01 11:00:00 1970
Lease Expires:    Thu Jan 01 11:00:00 1970
DNS Servers:   
Active Connection:    PC
Connected:    Yes
Online:        Yes
Using Modem:    Yes
Using LAN:    No
Using Proxy:    No
SSL 3.0 Support:    Enabled
TLS 1.0 Support:    Enabled
Firewall Information
Windows Firewall is on.
iTunes is NOT enabled in Windows Firewall.
ZoneAlarm Firewall is installed.
Connection attempt to Apple web site was successful.
Connection attempt to browsing iTunes Store was successful.
Connection attempt to purchasing from iTunes Store was successful.
Connection attempt to iPhone activation server was successful.
Connection attempt to firmware update server was unsuccessful.
The network connection timed out.
Connection attempt to Gracenote server was successful.
Last successful iTunes Store access was 2011-11-16 09:59:57.
**** CD/DVD Drive Tests ****
LowerFilters: Afc (1.0.0.2),
UpperFilters: GEARAspiWDM (2.2.0.1),
F: hp CDDVDW TS-L633N, Rev 0300
Drive is empty.
**** Device Connectivity Tests ****
iPodService 10.5.0.142 is currently running.
iTunesHelper is currently not running.
Apple Mobile Device service 3.3.0.0 is currently running.
Universal Serial Bus Controllers:
Intel(R) 5 Series/3400 Series Chipset Family USB Enhanced Host Controller - 3B34.  Device is working properly.
Intel(R) 5 Series/3400 Series Chipset Family USB Enhanced Host Controller - 3B3C.  Device is working properly.
FireWire (IEEE 1394) Host Controllers:
1394 OHCI Compliant Host Controller.  Device is working properly.
Most Recent Devices Not Currently Connected:
iPhone 4 (GSM) running firmware version 5.0
Serial Number:    85107XQLA4S
**** Device Sync Tests ****
No iPod, iPhone, or iPad found.
< Edited By Host >

Hi AM_Kidd.
Thanks for your reply.
I have done a complete uninstall and re install of iTunes and all related apple programs from my laptop through control panel, add remove programs and also by going through program files and deleting all tracers of any left over folders remove programs may have missed.
My apologies for forgetting to add this in my original post.
Thanks again

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