Installing iTunes 7.5: Getting Music Fails

I've had this error for the last 4-6 days on a WinXP SP2 system aiming to activate my brand new iPhone to no avail!!! I finally got iTunes 7.5.0.20 installed after days of problems with the software installation. I thought I was well on my way to using the iPhone and signing up for my 2 year contract with AT&T when this connection timeout error occurred.
First off, this is a very poorly written error message. Apple should be embarrassed by it. Here it is, word for word:
iTunes could not connect to the iTunes Store.
The network connection timed out.
Make sure your network settings are correct and
your network connection is active, then try again.
The message does not say which network connection timed out, when it did or why it did. It does not indicate which network settings to "correct". I did check all my network connections and all my network settings to ensure they were "correct".
I haven't had any other network connection or setting issue at all with any other application for months and months. My network connection is, was, and has been "active" and I keep "try"ing "again". This appears to be an iTunes 7.5 problem.
Would an Apple representative please reply with a fix? I want to activate my iPhone!!!!
Thank you in advance.
Here are the generic diagnostics for reference:
START DIAGNOSTICS
Microsoft Windows XP Home Edition Service Pack 2 (Build 2600)
Compaq Presario xxxx xxxxxxx SR1300NX xxxx
iTunes 7.5.0.20
CD Driver 2.0.6.1
CD Driver DLL 2.0.6.2
Current user is an administrator.
The current local date and time is 2007-11-23 22:26:00.
Video Display Information:
VIA/S3G UniChrome IGP
o
+
# Network Connectivity Tests **
Network Adapter Information
Adapter Name: {xxx-xxx-xxx-xxx-xxx}
Description: xxx Fast Ethernet Adapter
IP Address: xxx.xxx.x.xxx
Subnet Mask: xxx.xxx.xxx.x
Default Gateway:xxx.xxx.x.x
DHCP Enabled: Yes
DHCP Server: xxx.xxx.x.x
Lease Obtained: Fri Nov 23 21:07:23 2007
Lease Expires: Sat Nov 24 21:07:23 2007
DNS Servers: xxx.xx.xx.xx
Active Connection: LAN Connection
Connected: Yes
Online: Yes
Using Modem: No
Using LAN: Yes
Using Proxy: No
SSL 3.0 Support: Enabled
TLS 1.0 Support: Enabled
Firewall Information
Windows Firewall is off.
Connection attempt to Apple web site was unsuccessful.
The network connection timed out.
Connection attempt to iTunes Store was unsuccessful.
The network connection timed out.
Secure connection attempt to iTunes Store was unsuccessful.
The network connection timed out.
Secure connection attempt to iPhone activation server unsuccessful.
The network connection timed out.
o
+
# CD/DVD Drive Tests **
UpperFilters: incdrm (4.3.20.1), InCDPass (4.3.20.1), GEARAspiWDM (2.0.6.1),
E: xxxxxxxxxx, Rev 0.xx
Drive is empty.
o
+
# iPod Connectivity Tests **
iPodService 7.5.0.20 is currently running.
iTunesHelper 7.5.0.20 is currently running.
Apple Mobile Device 1.14.0.0 is currently running.
Universal Serial Bus Controllers:
VIA Rev x or later USB Universal Host Controller. Device is working properly.
VIA USB Enhanced Host Controller. Device is working properly.
FireWire (IEEE 1394) Host Controllers:
VIA OHCI Compliant IEEE 1394 Host Controller. Device is working properly.
Connected Device Information:
iPhone, iPhone running firmware version 1.0.1
Serial Number: xxxxxxxxxxx
END DIAGNOSTICS

Make sure that you are not trying to download through a router. Make sure that your connection is direct from your computer to your modem. Just an idea as this worked for me when I had a similar situation.

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