iTunes could not connect to this iPhone because an unknown error occurred (0xE8000001).

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I only realized today, that my iTunes gave this message whenever I connected to my iPhone 4.

"iTunes could not connect to this iPhone because an unknown error occurred (0xE8000001)."

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Here’s a series of test which I have done to isolate what’s the main problem.
There are 2 USB ports on my MBA (name as USB#1 and USB#2).

When connect to USB#2:
  • iTunes gave error above.
  • iPhoto is able to recognize the iPhone.
  • DiskAid unable to recognize the iPhone.
  • Delete and Reinstall iTunes - doesn’t work.
  • Reset PRAM and run Disk Utility (Repair Permissions) - doesn’t work either.
  • All other USB devices such as Sony Camera and iPad has no problem.
When connect to USB#1:
  • iTunes recognize the iPhone! Can sync with no problem,
  • iTunes also recognize both iPad (when both are connected)
It seems that the USB#2 have no problem recognizing other USB devices EXCEPT the iPhone 4...!
The only thing left to do is to Restore the iPhone 4 or DFU and upgrade to the latest Firmware 4.3.3.
But... before I do this, can anyone here help me out? Any suggestion?

UPDATE:
Finally, I decided to try upgrade and Jailbreak iOS 4.3.3 using Pwnage 4.3.3.
However, the iTunes still failed to recognize the iPhone 4.