ITunes 9.2 Won't "Create MP3 Version"...

Hello all...
I have been doing this for YEARS, and not just a few times. I used to be able to simply select a file in iTunes (usually a WAV or AIFF file) and then just click on "Create MP3 Version" in the iTunes menu. When I used to do this a grayed out version of the file would appear in the list of files in the iTunes browser until the encoding was done. After the process completed, there would be a beep and then I would see the file right there in the iTunes browser. Now no such thing happens! I do see that iTunes is "encoding" in the status bar at the top, and there is a beep at the end, but then there is no file to be shown afterwards... What happened?
Thank you!

I use to be able to make a MP3 disk without problems in iTunes 10.4 - did it last night. But then I downloaded 10.5 - now iTunes WON'T make MPe3 disk. Tells me that files have to already in MP3 format to be written to a MP3 disk!
Right lick on any file in the playlist and  select MAKE MP3 version - I watch the progress bar move but it appears as if nothing changes - the file is still not recognized in the playlist as being able to write to disk as MP3! - example, I have 30 files in a playlist but only 5 can be recorded onto disk as MP3.
Apple screwed up with this and starting to get like old Microsoft.
In this day and age of corporate wall street greed- Apple follows suit in lock step -  do it my way, buy my products (old ipad users locked out of most new stuff - Apple's way of "encouraging"  you to buy their new stuff )
iTunes 10.5 is NOT an imporovement.iPad ios5 is filled with other bugs.. ruined my gmail account and temporarily shut me down - had to petition GOOGLE to reinstagte me after explaining my iCloud account possibly fouled things up

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