ITunes 7 and USB Harddrive issue

Everytime I install the new version of iTunes, it drops my USB Harddrive from the computer. The system thinks the drive is empty, yet all my folders are there, just no files. I do a system restore and no iTunes, but I can then see everything on the harddrive. What is causing this? I get an error that says failed to write to drive G: after the install which G: is the USB harddrive. Never had this issue before the update, and can't get back to version 6 now. So of course I can't update my ipod now.

Similar problem - when I upgraded to iTunes 7.0.2.16, my USB connected camera, my pen drives, and my iPod nano all stopped working.
I don't want to re-install my OS there has to be a reason

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