ITunes is on a locked disc or you do not have access

Having a real problem with this.
Got a new PC earlier this week to replace a laptop that was stolen. It runs Windows 7 home premium. Basically the setup is this.
iTunes used to store and organise all music.
All music stored on external harddrive connected to PC via USB 2.
iTunes music also working through Squeezebox in living room and bedroom squeezebox radio. No problems at all.
Problem is, I want to listen to music on my Xbox whilst playing games. However everytime I activate media sharing, and get media center to monitor my folders I cannot start iTunes.
I get an error message as described in the subject line of this post. I got it the first time earlier this week and the only way I could get iTunes working again was to completely reinstall windows. All was fine until I set up media center this morning, and now I get the same error!
This is REALLY annoying and I wonder if anyone can advise?
Thanks in advance.

Sounds like a problem with Media center or the X-Box.

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