A friend has just got a new iPod Touch, and when they connect it to their PC (Win XP), the Scanner and Camera Wizard always pops up. I remember having this issue on my iPhone, and found that if you go to the 'camera' device Properties, and select the Events tab, you can choose to 'Take no action', which remedies the issue (see below). However, on their machine, even when logged in as Administrator, 'Take no action' and the other options are all greyed out and not selectable. Any ideas?
Not to worry, it seems that the change of user account to Administrator didn't 'stick' without a reboot. The screen now has the required options.