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gizmodo reporting Fresh install might fix the issue, or just downgrade.

Apple is unbelievably weak, or strong maybe, Vista's BsOD, I only saw once when the hardwares broken.
 
I upgraded from iTunes 7.7.1 to 8.0.0.35 using the iTunes8Setup.exe program in Windows Vista Home Premium (SP1) with no problems other than the really long time for the install to work.
 
installed itunes 8 last night went fine, plugged in Iphone 3g and my monitor loses its input signal and the display goes to sleep everytime. Restart same thing. Restart again same thing. Restart move iphone's usb syncs up fine and i'm all good now.
 
BSOD in iTunes 8

The most easy fix is to unplug any extra USB devices. HP and logitech USB devices are causing the most problems. If unplugging them doesn't work, you can try removing the drivers too.

After that, the work-arounds just get more and more ugly...

Here are more details...
http://tinyurl.com/itunesbsod

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