Pesky pesky reoccuring "iTunes Setup assitant".

what I have:
-iTunes v. 7.6.0.29
-Windows vista
-iPod touch
I have the most recent iTunes build version 7.6.0.29 on my Vista Machine. No hacks, nothing unusual. Everything has worked fine until recently. I did not do anything that I can think in regards to dramatic system changes.
The problem I am experiencing is every time I start iTunes (no difference from the start menu, desktop shortcut, automatic load) I get an annoying "iTunes setup assistant" dialog box. Selecting "cancel" leaves my library as is BUT all my iTunes setting are back to default. I also notice my iTunes account is not signed in as it was automatic before.
Selecting any other option drastically causes discrepancies in my iTunes library (if not wipe it out all together).
What I tried:
-Backed up everything.
-uninstalled iTunes, then reinstalled it. It worked for a while then back to square one.
Ugg, I tried searching this forum with no valid answers to this conundrum. Let me know if you have any other suggestions

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I have three new Windows 7 machines networked (two desktops and one laptop) that have four users on each - as busy family with children who need the computers for homework, projects, games, etc... The goal of this setup is that any user can log onto any computer and have there documents available to them no matter computer was free to use. I set this up using the library function in Windows 7 and seems to work pretty well.
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This “shift” button trick seesm to also point the default directory there without point to it in the advanced setup tab of iTunes.
I then synced one of the iPods with purchased content on it and synced that to the library after asking me to do so before an update. All the content showed up in the library and was playable - awesome.
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3 new Windwos 7 networked machines
4 identical users on each machine
1 TB Buffalo linkstation
iTunes setup with the folder on a SHARE
all user’s itunes connected to the iTunes folder on the NAS
all computers authorized with home sharing turned on.
one iTunes user account signed in on each machine
multiple iPods and one iPad in the system
QUESTIONS/CONCERNS
Is there a better way to do this on a NAS?
Would home sharing be better in some way?
I understand the NAS should show up under the shared section in iTunes - I assume that would mean that would mean each user has an iTunes library on their documents?
I have read that there may be corruption issues if users on the different machines try to access iTunes at the same time.
Will there be any issues syncing that various iPods with?
Ugh - sorry for the long post and all the questions. I am just trying to find the best way to do this. I wish Apple would put out a best practices document for setups like this. Thanks in advance.

This is a user to user support forum. Your fellow users can offer solutions or workarounds based on their experience with the application. If you think it should work differently drop a line to iTunes Feedback.
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Pesky pesky reoccuring "iTunes Setup assitant".

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