Which processes / services need to be running to perform a local sync with an iPod Touch iOS5 with Windows 7?
Okay so here are the prerequisites for making this work over wifi:
Prerequisites:
Programs Running:

iTunes

Services Running:
(Located in Start-&gt;Control Panel-&gt;Administrative Tools-&gt;Services)

Bonjour Service
Apple Mobile Device Service

wifi:

iPod connected to wifi and so is your computer

iTunes Issues:
If you have all of the prerequisites above set, and on your iPod you enter (Setting-&gt;General-&gt;iTunes Wi-Fi Sync) and you find the Sync Now button is still disabled do the following:

In iTunes click edit-&gt;preferences
Click the Devices tab.
Click the Reset History button.

Now if you look at your iPod Touch again the Sync Now button should now be enabled.
(found in the apple documentation)