TS3212 Unable to download new update for iTunes on my computer after installing OS6 on iPhone

Question

I have had no problems in the past being able to download updates until now.
I updated my iPhone 3GS to OS6 with no problems and now I cannot get my iTunes on my computer to download a new update from 10.5 to 10.7 and it now rejects my phone when syncing, saying that it needs to have an update to 10.6.3 or higher.  Is there anyway to get the update function back to working on my current iTunes without having to reinstall? If I must reinstall my iTunes, will it still keep all my data from before like an update or do I lose everything and have to start from scratch or will the installer keep the old config that is currently installed?
Things I have tried:
Restarting the computer---same results
I opened the software update application inside the software folder--opens the update window but has no updates listed in it...then tried to update again while having it open--still nothing.
Only thing I can think of at this point is to reinstall.
Just hoping for any help in order to avoid having to do this.
(Using Windows7 64-bit on my computer)
Any helpfull answers would be highly appreciated.

Answer 1

I bit the bullet and downloaded a fresh install download from apple.com since the updater would no longer work.
Still a mystery as to why the updater was no longer working.
Kept the original installed iTunes where it was and sent the new install to its same folder location.
First couple of attempts failed to download but I persisted and the third attempt it downloaded.
After the download, I went into the iTunes folder, clicked on the setup icon and the install was made complete.
Fortunately as diesel pointed out, all of my settings and media remained intact.
Thanks to diesel vdub for providing a little assurance, and now all is back to normal and up to date once again.