SOLVED
Examination of log file C:\WINDOWS\setupapi.log showed that there was an error loading “disk_install.NT.Services” from disk.inf because of a problem with “Filter Service: Failed to open service "?UŸ ". Error 1060”
Extract of C:\WINDOWS\setupapi.log
[2014/07/26 18:25:45 4040.2]
#-199 Executing "C:\WINDOWS\system32\rundll32.exe" with command line: rundll32.exe newdev.dll,ClientSideInstall
\.\pipe\PNP_Device_Install_Pipe_0.{E094CCFF-DC55-4ED3-9931-9BBFA2A4DCB6}
#I060 Set selected driver.
#-019 Searching for hardware ID(s):
usbstor\diskapple___ipod____________1.62,
usbstor\diskapple___ipod____________,
usbstor\diskapple___,
usbstor\apple___ipod____________1,
apple___ipod____________1,
usbstor\gendisk,
gendisk
#-018 Searching for compatible ID(s): usbstor\disk,usbstor\raw
#I022 Found "GenDisk" in C:\WINDOWS\inf\disk.inf; Device: "Disk drive"; Driver: "Disk drive"; Provider: "Microsoft"; Mfg: "(Standard disk drives)"; Section name: "disk_install".
#I023 Actual install section: [disk_install.NT]. Rank: 0x00000006. Effective driver date: 07/01/2001.
#-166 Device install function: DIF_SELECTBESTCOMPATDRV.
#I063 Selected driver installs from section [disk_install] in "c:\windows\inf\disk.inf".
#I320 Class GUID of device remains: {4D36E967-E325-11CE-BFC1-08002BE10318}.
#I060 Set selected driver.
#I058 Selected best compatible driver.
#-124 Doing copy-only install of "USBSTOR\DISK&VEN_APPLE&PROD_IPOD&REV_1.62\000A2700250069EC&0".
#-166 Device install function: DIF_REGISTER_COINSTALLERS.
#I056 Coinstallers registered.
#-166 Device install function: DIF_INSTALLINTERFACES.
#-011 Installing section [disk_install.NT.Interfaces] from "c:\windows\inf\disk.inf".
#I054 Interfaces installed.
#-166 Device install function: DIF_INSTALLDEVICE.
#I123 Doing full install of "USBSTOR\DISK&VEN_APPLE&PROD_IPOD&REV_1.62\000A2700250069EC&0".
#-035 Processing service Add/Delete section [disk_install.NT.Services].
#E263 Filter Service: Failed to open service "?UŸ ". Error 1060: The specified service does not exist as an installed service.
#E275 Error while installing services. Error 1060: The specified service does not exist as an installed service.
#E122 Device install failed. Error 1060: The specified service does not exist as an installed service.
#E154 Class installer failed. Error 1060: The specified service does not exist as an installed service.
#I060 Set selected driver.
#I125 Installing NULL driver for "USBSTOR\DISK&VEN_APPLE&PROD_IPOD&REV_1.62\000A2700250069EC&0".
#I121 Device install of "USBSTOR\DISK&VEN_APPLE&PROD_IPOD&REV_1.62\000A2700250069EC&0" finished successfully.
SOLUTION
Run, regedit
Go to registry subkey
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Class{4D36E967-E325-11CE-BFC1-08002BE10318}
Left click subkey, to show right hand side column (Registry Values)
Left click "File" (Top left), click "Export"
Export (copy) selected subkey to file (just in case something goes wrong)
On right hand column (Registry Values) Right click "LowerFilters" and select "Delete" from the drop down menu
Click "Yes" to the Confirm Value Delete message: "Are you sure you want to permanently delete this value?"
Close "regedit"
Restart PC.
Why having a Disk Registry Key entry of “Lower Filters” with a “zero length binary value” affects the iPod Classic and not the Nano and why the value shows in the Registry Key and not in the “Device Manager, Disk Drive, Apple Ipod USB Device, Details, Device Lower Filters” is a mystery - but it has done the trick (for my problem) and the iPod Clasic is now shown by Device Manager without an exclamation mark and the device loads without any error messages.
Does anyone know if the Disk Registry subkey "LowerFilters" value is in the original XP software or has it been changed during all the updates and Service Packs?
Ricardo