iTunes could not connect to this iPhone because an unknown error occurred (0xE8000065)

“iTunes could not connect to this iPhone because an unknown error occurred (0xE8000065).”

1. Close iTunes
2. Unconnect USB
3. Turn on Airplane Mode.
4. Turn off Wifi. (Jailbreakers...)
5. Reboot iPhone and computer
6. Reconnect USB
7. Open iTunes and sync.
[updated 5/9/12 with USB info]

“iTunes could not connect to this iPhone because an unknown error occurred (0xE8000065).”