I pod touch wont sync, i get following message -Itunes could not bckup ipod because as ession could not be staretd withipod

I run windows 7 and cant get ipod to sync. I hav run diagnostics and it says everything fine, but ipod goes through entire sying phase then comes up with following message
itunes could not backup ipod becuase asession could not be started
Any ideas appreciated

B-rock, thanks for posting the above.  I actually have the same issue, running Windows XP and I don't have that backup location, \Application Data\Apple Computer\MobileSync\Backup\.  When I go to Documents and Settings\(username)\ there's a AppData folder followed by:\LocalLow\DataMngr\ .
I have the latest update, 5.0.1 and I have the iPod Touch 3rd gen.
I have tried removing itunes and all that is associated with it then reinstalling and keep getting the same message.  I've reset my ipod thinking that would help but still, no backup.
In iTunes, Edit, Preference, Device there are no backups.
What am I doing wrong, can you help? 
Thank you!

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