IPOD CONNECTIVITY PROBLEM WITH WINDOWS XP VIA USB 2.0

Question

Enough is enough.
I have an ipod touch and I am having difficulty connecting it to my pc via usb 2.0.
I have searched the entire web and came across many cases similar or the same as mine. It's time for apple to face the fact that there is something wrong with either the apple mobile service or the apple usb drivers or the itunes software that causes connectivity problems with win xp.
For the record my case is this:
I got my itouch 3 days ago. I installed itunes 8.0. Then I plugged in my ipod to a usb extension cable port connected to a usb at the back of my desktop computer. At first I got the "this usb device can perform faster if you plug it to a usb 2.0 port etc." message. So I did. I removed the extension cable and connected it directly to one of the usb ports at the back. The first time it synchronized, it seemed fine. So I decided before I do anything with it, to update it to the 2.1 version. I made my account and bought (very bad policy there apple, it should be free or at least cheeper than 8 euro) the 2.1 update. I clicked to update the i-touch. While it was updating it crashed during the restore process (because it was disconnected but I didn't know that at the time). I unplugged it, resetted and plugged it back and managed to continue the restoring process until it was updated. After figuring out itunes I chose the "manage files manually option", kept everything unchecked in the sync options except the applications. I noticed there were random disconnections here and there but I didn't pay much attention because they weren't very frequent.
The next day I plug in the touch again and suddenly I hear that annoying "connecting-disconnecting" sound from windows while my touch kept disappearing and reappearing in itunes. Suddenly my playlists disappeared from the touch. Nothing was in the touch any more. How could that happen since i had chosen to manage my files manually instead of synchronizing? So I unplugged the touch again, restarted the touch, restarted the pc, stopped and restarted the apple mobile service, unistalled and reinstalled itunes, searched microsoft support and read many usb troubleshooting documents in the web. Nothing happened. The touch randomly keeps disconnecting from the usb. I eventually managed to put my stuff back in and keep them there.
Here's what I know:
1) There is nothing wrong with my usb ports. I don't use usb hubs, they are usb 2.0, the voltage (500mA) is correct in the device manager. Everything else works fine there.
2) The ipod touch does not support disk mode so you can't see it under "my computer" and this is not a problem.
3)There is nothing wrong with the ipod, it works perfectly.
4) This is not a usb cable physical problem.
5) The five R's are irrelevant with this situation.
Uninstalling and reinstalling itunes doesn't solve the problem, neither does hard resetting the ipod.
6) Older PC configurations seem to be more affected by this but it doesn't have to do with unsupported specific chipsets.
Here's what needs investigating:
1) There may be a problem with the apple mobile service running on win XP.
2) There may be a problem with the apple usb driver and win XP or older motherboards.
3) There may be a 2.1 firmware issue with usb 2.0 connectivity.
Workaround so you don't go nuts:
Use USB 1.1 instead of 2.0. It is A LOT slower but it keeps the connection stable and you can work with the ipod. Just start copying and go do something else for the next hour. So far it works for me.
This is a serious issue that needs immediate attention. I've stumbled across forum discussions dating to 2005 with this problem (with older ipods of course).

Answer 1

I think this needs to be put down to the eternal PC/Mac argument. Apple dont want to fix this as they want everyone to buy a Mac. Its a business, understandable, but in turning away PC buyers they alienate a huge percentage of the market.
Now, I had my first iTouch stolen. It synced, for the most part, very well, just occasionally it removed settings and music, but ticking boxes each time I sync'd sorted that, Its a workflow procedure.
SO, now that my Touch has been replaced, iTunes cannot see it. The PC can identify it on USB1 or USB2, My work lap top can see it and has indeed upgraded it to V2 software, just in case that was the issue, but no. For some really weird reason Itunes on my desktop cannot see the new pod.
This does not make sense with the argument that Apple software doesnt work on a PC, but doesnt help that none of the Apple support staff, phone or in-store have a clue about Windows operations.
Because my Touch has now been trying to connect to 6 separate installs of itunes, multiple USB ports, multiple USB cables, a complete overhaul of the registry settings (everything else still works), and the loss of all my previous settings and backups from the last Touch... but still, the PC says its an ipod but cant install it, iTunes sits there, dumb.
The only thing I can do now is sell the device as brand new as it has never had music on it and is just a week old...
It has changed the MiniMac I was going to have for my new flat screen TV into a PC and suggests that anyone with a PC should stick to devices that run on PC, of which there are many, just without the user interface of the dear departed IPod Touch.
Thanks