Itunes cant find "iTunes" folder in Windows XP Professional

after installation of iTunes 4.7.1 without error messages, iTunes wont start up. Keeps giving error message:
The folder "iTunes" cannot be found or created and is required. The default location for this folder is inside the "My Music" folder.
On my windows xp box, there is a "My Music" folder at desktop level (c:\My Music ). iTunes installed iteself under Program Files (c:\Program Files\iTunes).
What is going on here? Is there a fix? I called Apple Tech Support. They walked me thru uninstall of the 4.7.1 and install of iTunes 5.1. Still get the same error.
When I google the error message, I can see quite a few people reporting frustration with this problem. Is it a known issue? If so, what is the solution!!!
Thanx
rv402001

I am having the exact same problem as Ravi. I recently upgraded to iTunes version 5.0 and now the program will not even open. It hangs for about a minute and then the error box pops up with:
"The folder "iTunes" cannot be found or created, and is required. The default location for this folder is inside the "My Music" folder."
I have checked on the location of iTunes. It is in the right location but what is wierd is that when I click on the "My Music folder in the Explorer Window, my machine hangs for about 30 seconds before showing the contents. Then when I click on "iTunes" folder, the machine hangs indefinitely. It simply will not show me the contents of the folder. Eventually it gives me an error:
"Request cannot be performed because of an I/O device error."
I just reinstalled the iTunes 2 days ago hoping it would fix the problem, but no luck...I also tried the Tweak UI program, but to no avail...my machine hangs when I try to pick the "My Music" folder in the final step of the process.
Has anyone else had this problem?

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