I can't link my Paypal Account to my iTunes Stores Account

I am attempting to connect my billing preference in the iTunes Store to my Paypal account. The process takes me to Paypal and then at the end is supposed to return me to the iTunes Store. After clicking on "Return to iTunes Store" the page "Returning to the iTunes Store...Please Wait" loads and then stops/hangs.
This error message is in my taskbar: (using Internet Explorer as my default browser when I get this message)
Webpage error details
User Agent: Mozilla/4.0 (compatible; MSIE 8.0; Windows NT 6.0; Trident/4.0; SLCC1; .NET CLR 2.0.50727; Media Center PC 5.0; MEGAUPLOAD 3.0; .NET CLR 3.5.30729; .NET CLR 3.0.30729; OfficeLivePatch.1.3; OfficeLiveConnector.1.5; .NET4.0C)
Timestamp: Sat, 18 Dec 2010 22:00:58 UTC
Message: The data area passed to a system call is too small.
Line: 6
Char: 104793
Code: 0
URI: https://buy.itunes.apple.com/htmlResources/CC7A/web-storefront-preview.jsz
This is using Internet Explorer as my default browser. I normally use FireFox, but Firefox blocks the return to the iTunes Store, as well.
I've contacted both Paypal (no problems there with my account or their system) and Apple Support (they can't seem to figure this out -- appears to be either an OS or Browser problem to them.) I've also posted this with the Microsoft Solutions forum but their suggestions haven't worked. Nothing seems to work. I'm hoping you can help me resolve this issue. An iTunes technician is working on it apparently. He contacted me on 12/23/10 but I haven't heard back from him.
"My name is Jonathan and I have been assigned your case. I want to thank you for your continued patience while I work on your issue involving setting up PayPal on your account.
I hope to have a resolution for you very soon, hopefully within in a couple of days, and will be certain to notify you as soon as more information is available.
The iTunes Store is dedicated to creating a pleasant music-shopping alternative for music lovers of all walks of life. Your experience is very important to Apple. Thank you for giving Apple the opportunity to improve its services. Have a great day."
The browser appears to be blocking the return to the iTunes Store so I can finalize the payment change to Paypal. I've turned off the Windows firewall and my anti-virus. Did not make any difference.

I'm having exactly the same error, but on a Mac using Safari as de default browser....
When it goes back to iTunes I can only see the original page where I launched the paypal website from.... nothing happens and if I click continue the whole process starts again. I guess by now I must have created 30+ billing agreements...

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