Windows 7 sees the 3GS (like a camera), but iTunes can't!

So i finally get to upgrade from my crappy, beat-up iPhone 2G, which worked perfectly on my Windows 7 32-bit HP Mini, and bought an iPhone 3GS 32gb v3.1.2. The problem is, when i synced it, it was only recognized as a camera/ usb and not in iTunes. I've tried it on other computers and OSs, Like Vista and Mac 10.6 and they were recognized like any other. My 2G is still syncable to my laptop but my 3GS ain't! Please help, every single article about faulty syncing is about that P55 chipset which i dont have, ive got an Intell 82801 GBM/ GHM Chipset.

Verify iPhone Driver/Service Installation
The iPhone requires two important pieces of software to operate properly on Windows. First, the driver must be installed; for iPhone the driver is USBAAPL.SYS. Second, Apple Mobile Device Support must be installed as a Windows Service. If these are not installed, see the Reinstall iTunes section below.
Verify that the driver is installed by connecting iPhone to the computer and following these steps:
1. On the Start menu, click Run. (For Windows Vista and Windows 7, click the Windows Start button and click inside the Start Search field to place the cursor there.)
2. Type devmgmt.msc and click OK. A list of devices will be displayed.
3. Scroll down to Universal Serial Bus controllers and click the small plus sign to expand this group. iPhone will be listed as either Apple iPhone or Apple Mobile Device depending on the version of the driver installed.
4. Right-click Apple iPhone (or Apple Mobile Device) and choose Properties from the shortcut menu.
5. When the Properties window opens, select the Driver tab.
6. Click Driver Details to view more information.
Verify that the Apple Mobile Device Service is installed and running using the Services MMC snap-in:
1. On the Start menu, click Run. (For Windows Vista and Windows 7, click the Windows Start button and click inside the Start Search field to place the cursor there.)
2. Type services.msc and click OK. You will see a list of services.
3. View the list In alphabetical order and verify that the "Apple Mobile Device Service" status is "Started."
4. If the status does not indicate the service is started, right-click Apple Mobile Device Service and choose Start from the shortcut menu.
5. If the service is installed and started, right-click the service and choose Restart from the shortcut menu.
If the driver is installed and the service is installed and started, check the Event Viewer for error messages.
1. On the Start menu, click Run. (For Windows Vista and Windows 7, click the Windows Start button and click inside the Start Search field to place the cursor there.)
2. Type eventvwr.msc and click OK.

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