My itunes erroneously says that my ipod is synced with another computer when I try to sync. What can I do to fix this?

First, right after updating my iTunes to the latest version, my iTunes will not display album covers. It says exactly "iTunes is unable to browse album covers on this computer." It has never been an issue before, but, anyway... that is where it all started.
Then I read a bunch of Apple Support topics on the subject, and it directed me to replace my library file with a previous library file. So, I did, and now, not only will my albums not display, but my iPod Touch will not sync with my computer, the only computer I have ever used it on. It says that the ipod is synced with another library and asks me if I want to erase and sync (I have my music on my computer, but I will lose all of my apps and such).
What can I do to resolve this? Thanks for the help.

Syncing to a new iTunes library or computer will erase your ipod. Only if you back up your iPod manually before syncing, you can restore your device from that backup again. A manual backup does not include the sync process.
Do this:
Disable autosync in iTunes, connect your iPod to your new computer and right click on it in the device list and choose backup. iTunes will backup your iPod without syncing.
Transfer your purchases the same way, choosing "transfer purchases" this time.
All media content will be erased during the first sync, but you can restore your settings and app data from your manual backup afterwards.
Don't forget to set up at least one contact and event on your new computer to be able to merge calendars and contacts when you sync the ipod for the first time.
Music is one way only, from the computer to your device, unless you bought the songs in itunes and transferred your purchases.
There is 3rd party software out there, but not supported by Apple, see this thread:http://discussions.apple.com/thread.jspa?threadID=2013615&tstart=0

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