Itunes says my computer isn't authorized, then it says it's already authorized. Endless circle..

I know there are several threads similar to this one, but I wanted to start my own and include the exact messages that keeps popping up. Today when I tried to sync (by USB) my iPhone 4, I got the following sequence of messages:
1) "This computer is no longer authorized for apps that are installed on the iPhone "MyName". Would you like to authorize this computer for items purchased from the iTunes Store? If you do not authorize this computer, 11 apps and their data will be deleted from this phone."
2) My options are to click on "Cancel", "Don't Authorize", or "Authorize"... I click on "Authorize."
3) I then enter in my Apple ID and password and get the following message...
4) "This computer is already authorized. Including this one, you have authorized one computer out of your available 5."
5) I then click "OK" and message #1 pops back up. This cycle repeats over and over.
So far I've gone into "Shared" folder and do not have a SC file to delete. I've deauthorized and authorized my computer. I've started and restarted my computer after deauthorizing and authorizing and nothing seems to work. To make matters more frustrating, I haven't made any changes and everything was working great a week ago. I also don't think it's in iPhone issue because a week ago I downloaded a song and got a similar message sequence when I tried to play the song. Any help would be greatly appreciated.

The computer is new and I guess this is more of a computer than an iPhone problem, isn't it?
Is the computer a Mac?
If so, perhaps also give the following document a try:
iTunes: Missing folder or incorrect permissions may prevent authorization

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