My Ipod Touch has been working great for the past 2 years with MFT, then all of a sudden 2 days ago, i have the same problem you do. For kicks i plugged in my Ipad and it does the same thing.
Thanks everyone. Having a little issue with the Sync, sometimes it just slows to crawl, hit a buttom, wait 30 seconds, but it comes and goes. Now trying to get my phonebook pictures to work with my Sprint Evo, so far no luck.