Unable to set iTunes as the default audio player - do not have enough access privileges for this operation

I have just upgraded to iTunes 10.5.1.42 (from 10.5.0.143).
When iTunes is launched, a message from iTunes came up saying:
iTunes has detected that it is not the default player for audio files. Do you want to make iTunes the default player for audio files?
[   ]  Do not show this message again
                            [ Yes ]   [ No ]
Clicking the Yes  button, another iTunes message appears:
An error occurred while updating the default player for audio file types. You do not have enough access privileges for this operation.
                                [ OK ]
I found in Googles as well as from some of my own notes dated a few years back which others (and myself) encountered the same problem before. I don't recall what was the solution to this annoying problem. Maybe I should just check the first box and tell iTunes to "shut up"? It seems that iTunes is already the default program designated to open audio files like MP3, WAV or what not. Why does it need to be set as the default player again?
Come to think about it, I do have a few files with .aup as extension. These were played with "audacity". Perhaps that upsets iTunes player?

Hello magestecal,
Thanks for using Apple Support Communities.
To troubleshoot this issue where you're getting a permissions error when trying to sync your iPhone, I'd like you to please follow the steps in the article below.
iTunes: Missing folder or incorrect permissions may prevent authorization - Apple Support
Take care,
Alex H.

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