Needed to momentarily remove WifiSync for iTunes 9.2
In case anyone else is having this issue, I was getting the dreaded "Apple Mobile Device has not been started" error when trying to connect an iDevice after upgrading to the new iTunes 9.2 . . . and it looks like it was a problem with Wifi Sync.
If you have the desktop portion of WifiSync installed on your cpu and you're getting this error, try uninstalling it and then reinstalling later.
WifiSync can also cause a firmware restore or upgrade to get stuck at the end of the restore process, so you might want want to uninstall Wifi Sync when restoring too.