I RECEIVED A SOLUTION THAT WORKED!
I have been the subject of many hours of frustration trying to get my laptop to recognise my new Ipod Nano 4th Gen device. Just to clarify; my knowledge of computers ranges between biff and beginner so this is in no way a solution of my own. I got it from an Apple Tech Support rep (0800 048 0408 option 2 I think it is for Tech Queries), so in the first instance please contact these people who will guide you through this process step by step and hopefully solve your issues. I was guided through various connection and driver installation steps before I received the following info which finally resolved my problem. Here is a brief overview of the steps I took:
1) Right click "My Computer" - then select the following; Manage - Device Manager - Locate your device (Mine was under other devices and had a Yellow question mark with an exclamation mark next to it).
2) Right click the Ipod device and select "Uninstall". Once you have uninstalled your device and the device manager no longer recognises it you need to alter a permissions setting and heres how.
3) Select Start - Run - and type in "REGEDIT" and okay it.
4) Right click HKEY_LOCAL_MACHINE. Select "Permissions" then "Advanced".
5) In the "Permission Entries" box you should have the following permissions "SYSTEM" should be "Full Control" and "Everyone" should be "Read".
6) You then need to check (tick) the box which reads "Replace permission entries on all child objects with entries shown here that apply to child objects". Then select Ok.
Hope this helps you as it did me.