"itunes library cannot be read; created by newer version of itunes" message

My son clicked a message when he was downloading something the other day (he can't remember exactly what it said), but since doing so, if we try to open itunes we get the message: "the file "iTunes Library.itl" cannot be read because it was created by a newer version of iTunes."
When he was using it at that time, he synced his iPod and lost everything he had purchased, both games and songs. He shut down the computer, and since that time, we are unable to even access iTunes at all. If you click on the icon you just get the message above. No one wants to risk plugging their iPod into it and losing thier songs since their is no back-up for the music.
There are 3 iPods working fron that computer and there were hundreds of purchased songs. We can't even open the library now, and my son lost a ton of stuff when he synced his trying to get his movie.
Any ideas?

These directions should fix you up. Don't pay attention to the title of the article, just see if opening a previous itunes library works.
http://support.apple.com/kb/TS1967

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