ITunes 10.1 Upgrade on Windows 7, iPod Service issue

Question

I am upgrading from iTunes 10.0.0.68 (64 bit version) to iTunes 10.1 (64 bit version) on my Windows 7. After some time the popup error message reads,
Service 'iPod Service' (Pod Service) could not be installed. Verify that you have sufficient privileges to install system services
I aborted the installation. Roll back action took place and I am continuing with iTunes
Now when I run iTunes, the message says,
The software required for communicating with iPods and mobile phones was not installed correctly. Do you want iTunes to try to repair this for you?
I clicked on Yes. Then iTunes application opened with the message "Could not delete service" (the title of the window is 'iPod Service')
How do I fix this problem? I want to upgrade to iTunes 10.1 as I want to upgrade my iPad to iOS 4.2

Answer 1

Now, based on your latest response I did the right-click, install as Administrator. The result unfortunately is the same.
Okay ... let's try a modified version of the instructions from the following document. (The modification is because they aren't precisely accurate for 64-bit systems ... the program files that could potentially be left on your system by the unmodified instructions wouldn't normally be relevant to an iPod Service issue, but you're getting a relatively rare variation on iPod Service trouble. So, just in case ...)
If you get any error messages during any of the uninstalls, deletions or reinstalls, note down what they say and post back with the precise text, please.
Here's the document:
[Removing and reinstalling iTunes, QuickTime, and other software components for Windows Vista or Windows 7|http://support.apple.com/kb/HT1923]
... here's the modification:
When you get to *step 9* of the *Verify iTunes and related components are completely uninstalled* section, proceed instead with the following instructions:
(9) Right-click the Apple folder (if it exists), choose Delete, and choose Yes when asked to confirm the deletion. Click Continue if Windows needs confirmation or permission to continue.
Note: If you have a 64-bit version of the Windows OS, continue with step #10. Otherwise, skip to step #17.
(10) Open the Program Files (x86) folder.
(11) Right-click the iTunes folder (if it still exists), choose Delete, and choose Yes when asked to confirm the deletion.
(12) Right-click the iPod folder, choose Delete, and choose Yes when asked to confirm the deletion. Click Continue if Windows needs confirmation or permission to continue.
(13) Right-click the QuickTime folder (if it exists), choose Delete, and choose Yes when asked to confirm the deletion. Click Continue if Windows needs confirmation or permission to continue.
(14) Right-click the Bonjour folder (if it exists), choose Delete, and choose Yes when asked to confirm the deletion. Click Continue if Windows needs confirmation or permission to continue.
(15) Open the Common Files folder.
(16) Right-click the Apple folder (if it exists), choose Delete, and choose Yes when asked to confirm the deletion. Click Continue if Windows needs confirmation or permission to continue.
(17) Open Local Disk (C:) located in Computer or whichever hard disk your operating system is installed on.
(18) Open the Windows folder.
(19) For 32-bit versions of Windows: Open the System32 folder.
For 64-bit versions of Windows: Open the Syswow64 folder.
(20) Right-click the QuickTime file (if it exists), choose Delete, and choose Yes when asked to confirm the deletion. Click Continue if Windows needs confirmation or permission to continue.
(21) Right-click the QuickTimeVR file (if it exists), choose Delete, and choose Yes when asked to confirm the deletion. Click Continue if Windows needs confirmation or permission to continue.
(22) Right-click the Recycle Bin and choose Empty Recycle Bin.
Now restart the PC and try another iTunes reinstall.
Any better luck with that attempt?