Itunes Has Detected Incompatible Bluetooth Software
I had similar problems where itunes wasn't detecting my 1G ipod touch, however I just downloaded the latest version of itunes (itunes 220.127.116.11) just to see what happens and to my surprise, it detected my 1st generation ipod touch. I think Apple fixed the issue.
itunes has detected incompatible bluetooth software
The error is caused by different things including changes in software or hardware, malware or virus infection, corrupted Windows registry, overclocked graphics card, incompatible security software, or outdated graphics card drivers in the operating system.
Sometimes iPhone cannot be restored due to the incompatible issue. You may find that iTunes doesn't recognize the iPhone even after connecting it to the computer. In order to fix that, you might need to check whether your Mac and PC has the latest version of software installed. Plus make sure that iTunes is up to date.