Have you checked that your CD drive is working normally ? I assume it's not a USB socket issue.

While iTunes is generally hateful on a PC, I've had no performance issues with the older Version 7 -- maybe you can download an earlier version than you're having problems with.

Otherwise, as you are stuck with using iTunes with the latest iPods, take this as a warning of worse to come and cancel the order. Buy a player that works without control-freak proprietary software