Can't create new account with PayPal option

I'm trying to create a new account at the Music Store. I choose PayPal as my payment option. I verify everything at the PayPal page, and my PayPal plan is set up correctly, but then I get an error at PayPal saying there is a double post, and I have to re-login to PayPal?
Seems to occur when PayPal is trying to pass me back to the iTunes store.
At this point, my PayPal is set up corectly, but my iTunes account has never been created.
iTunes 7
Firefox 1.5.0.5

Oh, can I purchase the January iPod Touch software upgrade from them?
I think not.
any other suggestions?

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