USB device not recognized by computer for iPod Touch 2G?

Connected to computer as usual, but this time the computer & iTunes do not recognize it.  A message pops up from computer that USB device is not recognized and has malfunctioned.  Tried turning ipod off & on, then Reset all settings - no change.  iTunes had just updated so it is current. Restarted computer - no change.  Then I did the major reset on the ipod that erases everything - no change.  The ipod is charged and the 'connect cable to itunes' graphic shows on start up, but the computer & itunes do not recognize it.  Also tried using another ipod usb cable - no change.
We've only had it 2-3 months (bought it used-about 5 months) and it has worked fine, with no problems, until today. The only change that comes to mind is the update to iTunes today.
My other son has an ipod touch 4g & it connects to the same computer, same cable & itunes without any problem. Now my youngest son's ipod (2g) is wiped clean & I cannot put any of his apps or music back on it because it is not being recognized.  Any help is greatly appreciated.  My youngest is so sad, its heartbreaking.
Windows XP, sp3.

Try the troubleshooting here:
iPhone, iPad, or iPod touch: Device not recognized in iTunes for Windows

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