I figured it out!!
Try this to fix if you're still having issues:
1) Download the latest iTunes, then -extract - (not install) the files (I used 7-zip...)
2) Go to the parent folder where the extracted Itunes files were saved and install (repair) the AppleMobleDeviceSupport.msi.
3) In the device manager - uninstall the Iphone if its under Imaging device. (The problem is that Windows is automatically using microsoft drivers and overriding the apple drivers).
This should work. Itunes should now recognize your phone.