Tons of issues with iTunes 7.5 - And Getting Worse?

Problem 1 - Upgraded to iTunes 7.5. For some reason lost my music library, so now if I synch with my iPod I wil lose all my music. I will have to reload my music to iTunes, but that is the least of my issues....
Problem 2 - When I could get connected to the iTunes store I get this error. "iTunes could not connect to the iTunes Store".
Problem 3 - After trying to troubleshoot problem 2 and re-installing iTunes I am now getting the error iTunes could not connect to the iTunes Store.
Problem 4 - When I remove iTunes during troubleshooting it is also removing my CD-RW drivers as well and when I restart Windows after removing iTunes my drivers have to reload.
Problem 5 - During the breif moment when I could connect I bought a movie and since it things the network is not there it won't restart this.
I have now spent hours trying to troubleshoot this and am getting no where. I am so frustrated I am about ready to trash my iPod and iTunes and go buy a Zune...now that's frustrated!
What I have done so far:
A - updated iTunes to 7.5.0.20
B - updated Quicktime to 7.3
C - updated DirectX to 9c (already was, but I re-installed just in case)
D - update to the latest video drivers for Radeon 9600 7.11
E - update to the latest version of the ATI Catalyst Suite (and tried without, currently I have removed this)
F - Checked my display to be sure it is 32bit and at full acceleration.
G - Ran dxDiag
H - Unistalled and re-installed everything at least once, some thing more than once.
I - Turned off my Firewall.
J - Ran iTunes Network test, which says the network is fine!!
Here is that file:
Microsoft Windows XP Professional Service Pack 2 (Build 2600)
NVIDIA AWRDACPI
iTunes 7.5.0.20
CD Driver 2.0.6.1
CD Driver DLL 2.0.6.2
Current user is an administrator.
The current local date and time is 2007-12-04 22:47:22.
Video Display Information:
RADEON 9600 SERIES
RADEON 9600 SERIES - Secondary
** Network Connectivity Tests **
Network Adapter Information
Adapter Name: {39515F23-A281-43B3-AB11-002341900F2C}
Description: Realtek RTL8139 Family PCI Fast Ethernet NIC - Packet Scheduler Miniport
IP Address: "removed"
Subnet Mask: 255.255.255.0
Default Gateway: 192.168.1.1
DHCP Enabled: Yes
DHCP Server: 192.168.1.1
Lease Obtained: Tue Dec 04 22:09:19 2007
Lease Expires: Wed Dec 05 22:09:19 2007
DNS Servers: 24.56.133.69
24.56.133.69
24.56.133.70
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: Enabled
Firewall Information
Windows Firewall is off.
Connection attempt to Apple web site was successful.
Connection attempt to iTunes Store was successful.
Secure connection attempt to iTunes Store was successful.
Secure connection attempt to iPhone activation server was successful.
What the Fricken Fracken Patty Whack is wrong with This!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I am a getting problem where every time I close out of itunes it doesn't save anything and i get these random error messages saying, "The Itunes library file cannot be saved. You do not have enough access privileges for this operation." This message never goes away cause as soon as i hit ok it just pops up again and again no matter what i am doing it pops up over that. I also have full admin settings for my windows account.

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