The device shows up in device manager, but cannot be installed. The error is "Access Denied". I tried manual install of the USB driver - again Access Denied. I figured out it was something with permissions. Tried to change permissions in the registry - again i was denied access to my own computer!
After i read all type of "solutions" that did not work, checked if my USB ports work, finally figured it out. Some toolbar or other malware was the cause for this. So i removed all extensions from the browser, uninstalled everything not needed or of unknown origin, and ran Mbam. This free tool scanned my machine and found 23 files and registry entries living inside my machine. Removed all of them and after the first reboot my iPhone was recognized and installed succesfully! Good luck!
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