ITunes 7.7.1 repeatedly asking for authorization

Something has happened (at some point after upgrading to iTunes 7.7.1) and now every time I try to play any iTunes purchased song it asks me to authorize that song. Over and over and over again. In addition all my purchased songs / TV shows / applications have been removed from my iPod touch.
This is only my 3rd computer that is authorized. I have followed ALL the steps at
http://support.apple.com/kb/TS1389?viewlocale=en_US
including deauthorizing computer, removing the "SC Info" folder, rebooting, and reauthorizing. All to no avail.
Any ideas?
David

I for one don't believe it to be server related. It would be affecting everyone would it not? Secondly, my iMac was working fine even after 7.1.1, until I de-authorized it and re-authorized it that is.
iTunes is not saying it's not authorized- it's saying it is.
Also, I can transfer purchased music, but can't hear it on my iPhone, while I can't even play it in iTunes.
I've got a support e-mail into Apple, we'll see what happens. If it's not resolved promptly, I'm going to push for a full refund on my entire purchased catalogue.

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