I receive the message: The file "iTunes Library.itl" cannot be read because it was created by a newer version of iTunes. Would you like to download iTunes now?

I receive the message:
The file "iTunes Library.itl" cannot be read because it was created by a newer version of iTunes. Would you like to download iTunes now?
I've ALREADY downloaded AND installed the new iTunes.
ITunes WILL NOT launch.

Hello, hillbent. 
Thank you for the question.  If you have verified that iTunes 11.1 is installed, you will need to rebuild your iTunes library file.  Below, I have included the article that walks you through this process.  Start with the section labeled Re-creating the iTunes Library file.
iTunes: How to re-create your iTunes library and playlists
http://support.apple.com/kb/ht1451
Cheers,
Jason H.

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