Seems now to just be a temporamental issue, if I open device manager, i wait for it to start the sync, and just before it cuts out, i scan for hardware changes, by the time it refreshes, its disconnected the iPod, iTunes waits a while and then it finds it when device manager picks it back up, then it syncs fine.
Atm it's doing well passing a good 4000 files over that have built up in the downtime. I've had this problem since the beta/rc period so it'll work out i'm sure when win7 goes retail in october and apple do an update or something.