Stuck at "Finding Purchased Items" even after update and reboot

I have been unable to sync my iPad for several weeks. Itunes gets to "Find Purchased Items" then hangs. I've left it running overnight, but still nothing. I updated the software to the latest version (the one that allows sharing) and still nothing. Rebooted and still nothing. I know iTunes is completely frozen because I can't even return to it in Explorer (i'm using the Windows version).
What can I do to be able to start syncing my iPad again? It seems like ITunes is really becoming an Achilles Heel for Apple products.
Any help is much appreciated since I've bought several new apps and can't install ANY of them.

I was having the same problem on the iPad 1.  I am on the latest iOS (5.1.1) and the latest Lion (10.7.4) and latest iTunes 10.6.1 (7).
Tried to sync for the first time in months.  whenever it gets to 3 of 7 "finding purchases," iTunes completely hangs and I have to force quit.
I deleted iBooks on the iPad and then right clicked on the iPad in iTunes and did a BACKUP (option is set to backup to iCloud btw).
Once this was complete it sat on "WAITING TO APPLY CHANGES", for almost an hour.. eventually i was impatient, and tried an option change, and hit apply and it got past the screen and fixed it all.
Once all this was done, it was backing up/synching etc. very quickly.
Hope that helps anyone else who got stuck more recently than the thread origin!

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