Itunes won't recognize new Ipod Nano 8GB

Hi, help someone please. The error I'm receiving is: "An Ipod has been detected, but it could not be identified properly. Please disconnect and reconnect the ipod, then try again".
Tried this several times and even reinstalled itunes... didn't work. Tried using a different USB port as well.
All other ipods are working fine when connected. I'm using Windows XP. HELLLPPP please !! it's my kids new Christmas present

I had exactly the same problem - heres the procedure I used - hope it helps ?
It looks a bit daunting but only takes a couple of minutes.
Disconnect iPod
Go into Start - Control Panel - Add/Remove programs
Select iTunes and remove ( don't worry all your music should be safe - mine was still there when I reinstalled )
Next go to apple website, disable your antivirus ( not sure if this is needed, but it's what worked for me) and download and install latest iTunes 9.0.
After installation - close iTunes
Reboot your P.C. and then restart your antivirus.
Next
Go into Control Panel again, then administrative tools( if you can't see admin tools select classic view from the left panel.
Then select computer management - then device manager
Scroll down the list in the right hand panel and expand the universal serial bus controllers section.
Connect your ipod nano - you should hear a bleep and then the details in the USB controllers list should change ( if iTunes starts just close it )
From the USB controllers list select the new addition - it'll either say apple ipod usb or Mass storage device something like that( whichever one has just appeared on connection of your ipod )
Right click on the new entry and select uninstall - at the warning message select ok
wait for it to complete the removal.
Right click the entry again and select scan for hardware changes, keep your ipod connected.
The computer should now find your ipod and reinstall the necessary usb drivers for you.
Next
disconnect your ipod
start iTunes
on your ipod - press and hold centre button and menu for about 8 seconds - apple logo will appear, - then press and hold centre button and rewind for 6 - 8 seconds- ipod will go into a diagnostic mode.
a list will appear on ipod screen
press the centre button and it will select the first parameter on the list then press menu - you will be returned to the diagnostic list but you will be on the second item in the list - once again press the centre button to access, then press menu to return to the list - repeat until you reach the last item on the list "restore". press the centre button and the ipod should restore - apple logo will appear and the ipod will reboot(wait for a minute or so for this to complete )
Now connect to iTunes - hopefully your ipod will show up on the left hand side ( mine did )
click on your ipod on the list - you should now have a screen showing your ipod - it may prompt you to download a newer version of software - click don't download.
on this summary screen select enable disk usage and then click apply - now wait it can take a little while to complete.
When it is finished the apple logo will be back at the top of iTunes.
O.k. this is the fun bit and needs to be done quite quickly !
Read this next section completely before you start
click restore on iTunes.
it will say something like download and restore, click this.
a progress bar will appear - saying extracting software
followed by another progress bar, restoring "your name" iPod
my progress bar then showed 3 or 4 blue dots traveling across the progress bar without actually making any progress.
while this is happening unplug your iPod
press and hold centre button and menu for 8 seconds - apple logo appears
then press and hold centre button and play until it says disk mode.
reconnect your ipod - the progress bar should now slowly complete and at the end say something like ipod will show up on itunes when it reboots.
wait for the apple logo to appear on your ipod, followed by the start screen ( select language )
disconnect
select the language you want to use as from new.
reconnect and then sync as normal - everything should now work.
This is what worked for me - it's a bit long winded but so far so good.
I hope this helps you - it took me about six hours of searching and messing around to finally get this working - my 2 daughters were driving me mad as their new Nano's wouldn't work !!!!

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