Can't delete files in iTunes 10.4 (80) OS 10.7 Delete in the edit menu is not hi-lighted?

Can't delete files in iTunes 10.4 (80) OS 10.7 Delete in the edit menu is not hi-lighted. Any sugestions? I have three Mac's and they all have the same problem.

Gmatos, when I high-light and drag file from iTunes to my trash the usual promt of "do I want to remove it" followed by by the uual "do I want to keep the file or remove that from my library" comes up too. I click "dont keep file" and it is gone from my itunes and my library an my HD. It's exactly the same as it's always been except annoyingly this is the only way I can do it as the delete button just doesn't work in this latest version.
Hope this is clearer for you.

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