Unplug your computer for 15 seconds. Try again.
Also found this:
[iPhone] iTunes says "No iphone/ipod found."
Resolved:
Just allow iTunes internet access..!
Also this:
Got USB, No iPod Found - Fix
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Im sorry if this has been posted..but through my searching I was unable to find it.
If your getting the Got USB, Got USB, No iPod Found error...the problem is most likely with your TestLibUSB
The one thing I knew to do, was to run it under compability mode.
The problem was it would do nothing but cut off all my USB ports.
If your getting the error, uninstall it first.
Right-click on the setup file itself, and change the compability mode to Windows XP Service Pack 2...then install.