i have the iPod touch 3rd gen i believe (it's listed on apple's website as iPod Touch 64GB (late 2009) ) and i'm running windows 7 64bit...would that change things?
unfortunately i'm at work right now so i can't check those settings, but definitely will once i get home! and as for security, i run AVG for my antivirus...
i just can't believe that it wouldn't work and i think there must be something i'm missing...