trudiw - the first thing I would do before changing anything on your PC is to put the iphone in recovery mode.
Follow THIS guide and see if you can get it to be recognised in recovery mode - if so you will be able to set it up as a new iphone and it should work as normal from then.
Driver issue. After the phone call worked it out, here is the solution people for future reference
Update the driver:
o Right click the ‘ipod-camera’ in device manager and click on
‘Update Driver’ – the Hardware Update Wizard will open.
o Check the ‘Install from a list or specific location’ then click ‘Next’
o Check ‘Dont search. I will choose the driver to install' click 'Next'
Here you should see the Apple Device to update, click "Have Disk"
In the text box below type (or better copy and paste) or browse the folder to
C:\Progam Files\Common Files\Apple\Mobile Device Support\Drivers
Thx, Basically pickup up the wrong drivers and got OP to zap it & manually find the drivers.
Cool. I will first have to explain that I am a computer engineer, therefore a geek & get carried away in geek speak. if anything doesnt make sense please ask. In control panel >> Device Manager expand Universal serial bus & look through the list, can you see "Apple Mobile Device USB Driver" ?
It`s also good to know we have an expert on hand,the more the merrier.