The root cause of this issue has to do with the digital certificates the phone and Windows PC share. It can happen when trying to use more than one computer and not setting the sync relationship to guest on one of them. It also can happen when you are changing computers and didn't click "Forget This Phone" in Zune before changing.
Like Roland mentioned there is automatic Microsoft tool may help. If not follow these steps:
- Go to Start, then type in CertMgr.exe in the search box, once you see it open it.
- Locate the digital certificates that are named with the word named "Zune".
- Delete all of them
Restart your Pc and phone, then connect to Zune via usb cable. You should be good to go, this process worked for me a couple times.