Thanks for the reply Tony. No, the computer is brand new as is the iPhone. I did manage to solve the problem though. As I stated, the iPhone was the first thing I plugged into this new Laptop, with a fresh new copy of iTunes. The iPhone worked fine, it's the iPods that were not reconized by Vista.

Here is how I solved the problem. I removed the iPod from device mgr (Under Unknown Devices). Started up iTunes, plugged in the iPod and when Vista asked for a driver location I pointed it to the c:\Windows folder and it found the drivers. First was the USB Mass Storage Device driver, then the iPod driver, then the USBusEmumerator driver and now all is well.

It's a VISTA BUG! Once you use that USB Driver for the phone, anyother Apple product will require you to manually go into the windows folder and have Vista find it again and use it for your iPod. I wouldn't be suprised if this was done intentionally by Microsoft to try to get people to use there MP3 Players instead of Apple.