Transferring protected WMA audiobooks to iTunes/iPhone using OverDrive Media Console

Hi there,
My local library is now offering audiobooks. I have downloaded one, that went fine - I have the file and can listen to it. The problem is that I can't seem to transfer the WMA Audiobook to my iPhone using this software they provided (OverDrive Media Console), even though their website says that it can be transferred to apple devices (including my iPhone) and the library site says that this particular audiobook is permitted to be transferred to apple devices (including the iPhone).
When I try to Transfer using the OverDrive Media Console, I get this error:
"The OverDrive Media Console Transfer Wizard is not able to connect to iTunes. If you intend to transfer content to the iTunes Library and/or a supported Apple device, please note that iTunes v9.0.2 (or newer) is required. iTunes is available as a free download from Apple; visit http://www.apple.com/itunes/download to download iTunes. If your system meets this requirement, please close any open iTunes dialog boxes then attempt to transfer again."
I have read that others have had the problem, but there are few solutions emerging, from what I can see anyway.
I have went to this website (http://drmlicense.one.microsoft.com/indivsite) in my Internet Explorer browser and upgraded the Windows Media Player security version. OverDrive says my security upgrade version is 2.9.0.1.
My iTunes is up to date as far as I know. iTunes 10.4.0.80. Perhaps the recent update is something to do with this problem? I don't know. I am using Windows 7, and the OverDrive Media Console version is 3.2.0.5.
I have changed my iPhone settings to "Manually manage music and videos", as OverDrive requests this.
When I try to put these protected WMA Audiobook files into my Automatically Add to iTunes folder, I get an error message saying:
"One or more of the songs being added are in the protected WMA format, including the song "examplesongname01.wma", and could not be converted.
iTunes can only convert unprotected WMA songs. If you have the original CDs for these songs, you can import them using iTunes."
I have restarted iTunes, OverDrive Media Console, and my computer countless times. My home network sharing is turned off; I mention it as I saw someone had suggested that as a solution.
The two suggested solutions I haven't tried yet are:
- convert them to MP3
- uninstall and reinstall iTunes & OverDrive Media Console again.
I don't really want to uninstall iTunes. I have a lot of music and audiobooks; it takes half aday for iTunes to load them all up again. As for converting to MP3s; I don't know if this is legal. Plus, I don't know if these protected DRM files can be converted like that.
Ok, well I hope someone else was in the same boat & solved it. Otherwise it'd be a real shame if we couldn't get these protected WMA audiobooks onto our iPhones.
Hope you can help.
Thanks.

Once you have downloaded the audiobook to Overdrive Media (OMC), you need to connect the Apple device to which you wish to transfer the ebook, then use the transfer button on OMC.  That converts it to an mp3 file.  The ebook cannot be transferred to iTunes.  iTunes is simply the medium used in the transfer to an Apple device.  The tutorial below covers all the specifics.
Many libraries worldwide now use Overdrive Media Console, which comes in Mac an Windows versions http://www.overdrive.com/Software/omc .  Some find the mobile device transfer process confusing.  To load or delete a WMA or MP3 (Macs can only download MP3 books) audiobook onto an Apple mobile device see the "How to Transfer to a Portable Device" video in the guides at Step 7, then do the following.
1. For Windows versions, you must first do a security update of Windows Media Player (even though you won't be using it) using Internet Explorer at http://drmlicense.one.microsoft.com/indivsite .
2.  Open iTunes, plug the mobile device into the computer USB port and open the Overdrive Media Console.
3. Highlight the mobile device in the left hand menu of iTunes and insure the "Manually manage music and videos" box is checked in the Summary Tab. If the mobile device storage is full, transfering will delete that portion of music necessary for the ebook.
4. Highlight the book you want to transfer in the Overdrive Media Console and click the Transfer Button.   A window opens permitting you to click the boxes for parts of the book you wish to transfer.
5. After the book has been transfered, when you click the disclosure triangle (arrow) to the left of the iPod, iPhone, or iPad in the Device section of the left hand menu of iTunes, MP3 books will show up under the Music subsection and WMA books will show up in the Books subsection.  Once the mobile device is disconnected from iTunes, MP3 books will show up in the Songs list of the mobile device and WMA books will show up in the Books list.
6. To remove a book from a mobile device plug the device into the USB port and open iTunes. Click the disclosure triangle to the left of your iPod, iPhone, or iPad in the Device section of the left hand menu of iTunes so that you can see the device’s subcontents. For an MP3 book select the Music subsection, right click on the book and choose Delete.  For a WMA book, select the Book subsection, right click on the book and choose Delete.
7. The Overdrive Media Console Guided Tour (videos) is at http://www.overdrive.com/Solutions/Libraries/tour/MenuWelcome.html .  The "Portable Devices" and "How to Transfer to a Portable Device" videos are there.
8. To find a nearby library for ebooks search http://search.overdrive.com .  You can download the software, search for books and see tutorials without an account at the website of any library that uses Overdrive, however, you need a library card to download books.  At this library site, for example, the software and guided tour are at the bottom of the left hand menu.
http://washoecounty.lib.overdrive.com/539A4B98-B41A-49DE-8EC1-A22F66E4C0F6/10/41 9/en/default.htm .

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