IPOD not recognized via USB - A lot of trouble shooting already done.

I got a new 80GB iPOD to replace the 4th gen 40GB that just died (HDD issue). I cannot get the computer to recognize it via USB. I had the same problem with my 40GB via USB, however it would usually work via firewire. This new one will not let me use firewire, so I am forced to try to resolve the issue. I know this has come up before on here and I spent about 3 hours last night going through old 'USB Device Not Recognized' posts, but could never find anything similar. This is where I stand. Any help would REALLY be appreciated, because I am pulling my hair out over this.
All previous Itunes have been deleted and Itunes 7 has been installed. This is on WIndows XP Pro.
1. I know it is not a defective IPOD or USB cable because I brought them to work (a non Itunes machine) and plugged it up. IPOD was immediately recognized as IPOD /USB Mass Storage Device.
2. I know it is not the USB port at home because I plugged other devices (Klipsch Promedia speakers / Mouse / Keyboard) into the same port and they worked. Incidentally, this is a front USB port, however, I get the same result if I use a rear port.
3. It is not recognized in Itunes or in 'My Computer'. Only recognized as 'unknown device' in Device manager.
When I plug it up at home, it goes through all the 'new hardware detected' crap and then 'you new hardware is ready to use', but then after about 3 seconds, I get the 'USB Device Not Recognized....USB device has malfunctioned ....'. message. If I go to device manager and uninstall it and then retry. I get the same thing. Even f I reboot between tries.
So, I have pretty much ruled out a hardware problem. I think I read on here somewhere (or a link from Apple) that there was a Microsoft hotfix issued for this issue last year sometime (I think it was a SP2 compatability issue), however, I cannot find the fix. The link I had talks about the hotfix, but there is no file. Also, since the issue first appeared last year, I would think it has been resolved in one of the updates since then.
PLEASE help me out if you can. Thanks!

Here is what worked for me:
  My usb hub, being usb2, was too fast. I moved the wire to a usb port directory on my pc. That is a usb1 port which is slow enough to run your snyc.

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