ITunes 7.6 Upgrade Install Fails - "iPod Service could not be installed."

My system:
Windows XP Pro with SP2
Current iTunes version: 7.5.0.20
What I did:
Downloaded latest install exe for iTunes (iTunesSetup.exe)
Ran exe from Start / Run
During the install I receive the following message: "Service 'iPodService' (iPod Service) could not be installed. Verify that you have suffient priliges to install system services."
Note: I am the system administrator.
I abort the install and it rolls back. I restart iTunes. At this time a message box pops up stating "Ipod Service. Could not delete service"
In services I go to iPod Services and it is set to 'Disabled' When I try to set the sevice to Automatic or Manual I can not do so and I get the message: "The specified servoce has been marked for deletion."
I restarted my computer and opened iTunes.
When I run diagnostics in iTunes the Diagnostics file is as follows:
Microsoft Windows XP Professional Service Pack 2 (Build 2600)
Gateway E-4000
iTunes 7.5.0.20
CD Driver 2.0.6.1
CD Driver DLL 2.0.6.2
Current user is an administrator.
The current local date and time is 2008-06-29 09:45:00.
Video Display Information:
NVIDIA GeForce4 MX 440
** iPod Connectivity Tests **
iPodService 7.5.0.20 is currently running.
iTunesHelper is currently not running.
Apple Mobile Device 1.14.0.0 is currently running.
Universal Serial Bus Controllers:
Intel(r) 82801BA/BAM USB Universal Host Controller - 2442
Intel(r) 82801BA/BAM USB Universal Host Controller - 2444
Intel(R) 82801DB/DBM USB Universal Host Controller - 24C2 . Device is working properly.
Intel(R) 82801DB/DBM USB Universal Host Controller - 24C4 . Device is working properly.
Intel(R) 82801DB/DBM USB Universal Host Controller - 24C7 . Device is working properly.
Intel PCI to USB Enhanced Host Controller. Device is working properly.
FireWire (IEEE 1394) Host Controllers:
OHCI Compliant IEEE 1394 Host Controller. Device is working properly.
Connected Device Information:
J (G:\), iPod nano running firmware version 1.3.1
Serial Number: 7R552929TJT
Bus Speed: 61440
So:
How do I get iTunes Helper to run again?
How do I get the iTunes update to version 7.6 to successfully install?
Thank you for your help.

Before reinstalling everything, I'm curious if you've ever used your System Configuration Utility on your computer? Click Start > Run and type msconfig. Click OK. Is the option for 'selective startup' selected? If so, click the Startup tab and make sure iTunesHelper and qttask are selected, and then click the Services tab and make sure iPodService and AppleMobileDevice are selected.
If that is not the case, I would recommend removing everything and reinstalling.
My recommended technique is as follows:
Go into Control Panel > Add/Remove Programs
Remove these applications:
1. Apple Software Update
2. Apple Mobile Device Support
3. iPod for Windows (this may or may not exist, either way, it's not needed so we can remove it)
4. iTunes
5. QuickTime
Restart the computer
Download & Install the Windows Installer Cleanup Utility:
http://support.microsoft.com/kb/290301/
Launch the Utility: Start > Programs > Windows Install Clean Up
Select any of the above mentioned applications, and click Remove
Restart the computer again
Download & install iTunes again from here: http://www.apple.com/itunes/download/
CG

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