When I attempt to upgrade an app in iTunes for windows, I get an error:  "Could not purchase.  An unknown error occurred (11111).  There was an error in the iTunes Store.  Please try again later"

When I attempt to upgrade an app in iTunes for windows, I get an error:  "Could not purchase.  An unknown error occurred (11111).  There was an error in the iTunes Store.  Please try again later"
I am running the latest iTunes 10.7.0.21 for Windows 7.
This error occurs if I try to either update the app or if I delete it and attempt to redownload.
I have an iPhone and an iPad.  I am unable to update the apps or install the apps from within the App Store on iOS.
I do not have an AOL ID, as is a common issue with this type of error.
From what I can tell, my Apple ID account seems fine.  I logged in, changed some information, and ensured my credit card is valid and updated.
I can download new apps just fine.  I am unable to update or install apps I have purchased in the past.

After 30 minutes this morning, no resolution. Then another tech support call this afternoon, 15 minutes in, was escalated to a Tier 2 (Senior) advisor. He said something similar to the above ("this is one of the strangest things I've seen"). He was chatted with iTunes guys and took all my info into the case and was escalating it over to engineering. Said they would be in touch.
So, no solution...yet.
Just to clarify:
iTunes on Windows7: trying to update an existing app, or re-download a prior app, gives the (11111) error. Downloading a new (free) app worked fine.
App Store on iPhone5, iOS 6.0.1: click on UPDATE, switches to INSTALLING...for a second, then switches back to UPDATE. No error message (and nothing in Diagnostic data).
App Store on iPad 3, iOS 6.0.1: same as iPhone 5.
Definitely account related.
I have cleared the store cache, signed out and back in, deleted the credit card data, and re-added, rebooting PC and iPhone...nothing works.
Will post if I hear anything back from Apple.

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