ITunes won't let me connect to music store

Yesterday I opened iTunes and a window popped up saying something about my iTunes library was damaged. Then all my playlists vanished, along with about 2/3 of the music. I went ahead and uninstalled iTunes 7.0.0 and reinstalled iTunes 7.0.2 and reimported my library. Since reinstalling 7.0.2, iTunes won't connect to the music store. I get a message saying "iTunes could not connect to the iTunes store. Make sure your network connection is active and try again."
Of course, I can get online just opening a webpage. ran a diagnostics and it says a network connection could not be made. I clicked on the help tab and tried to empty the cache, and the dos window had the message: could not flush the DNS resolver cache: Function failed during execution.
I have done all that I know how to do. Any advice would be much appreciated. Thanks!

iTunes could not connect to the iTunes Store. The network
connection was refused. Make sure your network settings are correct and your network connections active, then try
again. Network Dignostics are as follows:Microsoft Windows XP Home Edition Service Pack 2 (Build 2600)
Dell Computer Corporation XPS-Z
iTunes 7.0.2.16
Current user is an administrator.
Network Adapter Information
Adapter Name: {57D93D1E-D893-487D-BF78-F6918D859FA4}
Description: Intel(R) PRO/100 VE Network Connection
IP Address: 192.168.1.97
Subnet Mask: 255.255.255.0
Default Gateway: 192.168.1.254
DHCP Enabled: Yes
DHCP Server: 192.168.1.254
Lease Obtained: Wed Nov 29 20:35:13 2006
Lease Expires: Thu Nov 30 20:35:13 2006
DNS Servers: 192.168.1.254
Network Connection Information
Active Connection: LAN Connection
Connected: Yes
Online: Yes
Using Modem: No
Using LAN: Yes
Using Proxy: No
SSL 3.0 Support: Enabled
TLS 1.0 Support: Disabled
Firewall Information
Windows Firewall is on.
iTunes is enabled in Windows Firewall.
Connection attempt to Apple web site was unsuccessful.
The network connection was refused.
Connection attempt to iTunes Store was unsuccessful.
The network connection was refused.
Secure connection attempt to iTunes Store was unsuccessful.
The network connection was refused.
What must I change?

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