(1) In Edit>Preferences>devices MAKE SURE that Disable Autosync upon connection is checked.
(2) Connect iPod (or iPad which we tested with) and wait for it to show up in Device on left and ALSO wait for the circle at the right side of the device line to stop turning (circle turning does NOT mean it is syncing if (1) above was done)
(3) Reverse (1) above (i,e enable autosync)
(4) Go to Device>Summary Tab and uncheck the Options line to disable iTunes from starting when iPod is connected . KEY POINT: If autosync is disabled, Apple decided it was unnecessary to stop iTunes from starting upon iPod connection so it is greyed out.
(5) Click Apply button in lower right corner. Othewise the setting in (4) will not take effect.
(6) Go back to (1) and do it again (i.e disable autosync).
(7) Close iTunes and disconnect iPod.