Well; things still seems to be not right with iPhone and iTunes on my Windows Vista. It happens every time I connect my iPhone to the PC; I even upgraded to the latest release of the iTunes and that is not helping it.
But since 3 days I got yet another new problem. I use my iPhone when I goto gym as it is a must case for my 40-minute workout; and after 20-25 mts of time; the phone starts skipping the tracks for every 3-5 secs and does not play most of them. Even after rebooting the phone also; gets into the same mode. Only option is to leave it for 10 mts and then it starts playing back. I am not positive if the ear-buds are sensitive to the sweat though. At times even the touch screen looses the sensitivity and I can not do anything other than waiting for 2-3 minutes. Something is completely wrong.
Time to place a apple iPhone support call