Insert "Mobile Device Setup Disk" or Itunes not regonizeing Itouch/phone

Question

How to fix itouch that said install mobile device setup disk or it was not recognized by itunes. So here this can help you fix that. *> = go to.*
First: Make sure you have the latest itunes installed.
Second: Open up device manager.To get there, Start menu > Control Panel(*make sure your in catagory mode!)*> Performance and Maintenance> System> Go to tab named Hardware> Click Device Manager Button
Third: A new window should pop up named Device manager. Go to the bottom where it says Universal Serial Bus Controllers click the little [+] The Ipod should be the first on the list, if not leave the manager open and replug in the USB wire again and it will come up.
Fourth: Right click the ipod > properties > go to driver tab> update driver.
Fifth: new mini window opens named hardware update wizard. click bubble yes this time only, click next. The error message will come up saying has not passed logo testing,click continue anyway.
Sixth: finally almost done. It asks now Insert Mobile Device Setup Disk.click ok.go to the pop out list and click C:\WINDOWS\SYSTEM32. Click browse. new mini window pops up, named locate file, go all the way to the end and there's a file named usbaapl or usbaapl.dll or usbaapl.sys click on that. If it is not located at the end of all the folders in the window. go to folder named drivers and look for it there, click it and open it.Click Ok, then Finish annnd there ya go!
Message was edited by: Saikeishi13

Answer 1

I got to step 3, but even after repeatedly plugging and unplugging the USB cord, iPod wont come up in device manager.
My 2nd generation iPod touch has always worked fine and synced with my computer without hassle, now all of a sudden it wont come up at all in iTunes, its not under devices or anything. iPod comes up with a charging symbol but computer doesnt see the iPod at all, anywhere. i have tried restarting iPod & computer numerous times, have re-installed iTunes twice, have restarted the ADMS, i've followed every single suggestion that ive seen and it still isnt working. Saw this post and havent tried this yet so thought id give it a go, but as i said it doesnt come up in the device manager as you say it should......am at a total loss and extremely frustrated.
Also - quick question, because i re-installed iTunes, does this mean i have lost all the apps i have downloaded and once i eventually can sync my iPod with computer, will i lose all apps from iPod as well??