Itunes says Another user is using the ipod software

When I connect my iPod which has only been owned for a week to my PC, it says that another user on the computer is connected to the Ipod software. This is incorrect. I have reset the IPod, but still cannot make the iPod talk to the PC. Help!!!

As Peeble said, Thomas & Ronnie, this sounds like "fast user switching" is enabled in XP. iTunes & fast user do not get along. See the following link for troubleshooting instructions.
http://docs.info.apple.com/article.html?artnum=93395

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