Continuous login loop when trying to purchase

When I try to purchase a song, it asks me to sign in. After I enter my login information and click "buy", it tries to access the store, then asks me to "sign in to buy" again. When I enter my login information again, the cycle repeats. Therefore, it's not letting me purchase/download any songs.
I am able to view my account information after clicking my login name in the upper right area of itunes, so logging in for other things doesn't appear to be an issue.
The diagnostics tell me that the network and itunes store connectivity is fine.
I have the same result with and without windows firewall active.
Any ideas on what's causing the purchase/download issue and how to fix it?

If someone else finds this thread with similar issues something to keep in mind is you might check to see if you are running a privacy or firewall program like NetBarrier. If you are that program may be affecting your communication with iTunes.
I was having a situation where I was trying to access the upgrade to iTunes plus option in iTunes. I would enter my password over and over only to have the login window pop up over and over with no mention of a bad password, etc - only the login window over and over.
I tried working with Apple support to find a work around. Reinstalled iTunes, etc. No joy. That was until I looked deep into my NetBarrier firewall software and found that under the privacy area, then under the surf tab, then under the Information Hiding tab there was an option to "Hide my AppleID when using iTunes mini store". Once I turned off this privacy feature my iTunes began to work normally.
I was told by support that it probably was a firewall or privacy program affecting the connection but it took me a lot of searching to find the one checkbox that was causing the issue. And while this was a problem now - it was not in previous versions of iTunes. I am currently using iTunes 8.0.2 (20).
Good luck.

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