Microsoft Anti-Counterfeit Program Causing Trouble with I-Tunes?

Okay, my girlfriend had a family friend build a computer for her, and of course, he installed a counterfeit XP Pro OS. She recently received the anti-counterfeit warning, and dutifully ordered the fix from MSOFT, for $149 and change.
You get the disk, which you don't need to use, and you need to run a tool which allows you to replace your counterfeit OS software key with a new one. And she did this successfully.
But now I-tunes 6 won't let her run her songs. Relevant messages are:
(1)"This computer is not authorized to play [x], wouldyou like to authorize it."
(2) She logs in with password, then it says..."Machine Authorization Successful, you have authorized 1 out of 5etc."
(3) But hit OK and you get - "We could not complete your music store request, an unknown error occurred (-208). There was an error in the music store, try again later."
Is I-tunes relying on the software key to verify authorized computers, but not able to handle a key change? Considering the scale of the MSOFT anti-counterfeit program, probably gonna be trouble! Any known info on fixing this issue?

Its a corrupt SC folder.... First goto Advanced>deauthorize over and over til you get "This PC has not been authorized"
Now follow these steps, its for a different issue but the steps are the same for deleteing the SC folder
http://docs.info.apple.com/article.html?artnum=302386

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Microsoft Anti-Counterfeit Program Causing Trouble with I-Tunes?

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