Why does iTunes say it is not connected to the internet when the connection is active?

No problems running iTunes on Windows XP machine with Norton Internet Security.
Moved to new computer with Windows 7 - still running Norton Internet Security.  iTunes does not start when iPhone4 is connected with USB cable.  Worse problem is that all internet activity (check for updates, activate this computer, etc.) is halted with message that computer is not connected to the internet... but it is.  All browser and email activity works right.
Do I have a Windows 7 setting problem, a Norton Internet Security setting problem, an iTunes setting problem?
Thanks in advance.

For the device connectivey issues try Andrei Cerbu's post here or see TS1538: iOS: Device not recognized in iTunes for Windows, in particular section 5, forcing a driver update.
I suspect Norton's firewall is blocking iTunes. I can't tell you offhand where to look to tweak things.
tt2

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