Why does the iTunes AppleID system refuse to work properly without the need to reset the password every time I open iTunes for use?

Alright so here is the issue. When I first started using iTunes I created my AppleID. I locked it in to remember my password and authorize my computer so that I would NEVER HAVE TO ENTER IT AGAIN. So years pass, no problem. Then "ITUNES 11" come on everyone lets upgrade or you can't proper use the iTunes Store. Seriously it wouldn't let me access the store. Go Figure. So I upgrade simple right? No. It really isn't when iTunes 11 rolled out it was riddled with minor bugs that made the experience annoying so I did a rollback and live without the store for awhile.
About a year passes and I try again this time upgrading iTunes through a COMPLETE fresh install, again I did what had done the first time I logged my AppleID and reauthorized my computer. Hurrah other than getting use to the new UI it ran perfectly. Yes Finally! Right? Again.... No. No more than 2 or 3 software updates later suddenly my password for my AppleID is incorrect I was like "Okay?" and re-entered it thinking the big update cleared my settings.
Wrong Password please reset password to continue using the iTunes store.
I was like okay maybe the user agreement change and we all need to reset passwords and re-accept the EUA. So I go through the process to create a new password successfully and reset my AppleID in iTunes with the new password. Come back a few weeks later it happens again this time I enter my new password and what do I get?
Wrong Password please reset password to continue using the iTunes store.
So I first do a repair install to my iTunes than reset my password this time NOT setting it to remember password. Great everything works fine again password even matched my Home CompID so that I could NEVER lose it well come a few days later I try to use the store and what happens?
Wrong Password please reset password to continue using the iTunes store.
to try to make my Long story a little shorter....
This has been going on for the better part of 3 years I have almost completely dropped iTunes which has the better store library for Goggle Play Music who's store library isn't even a third the size iTunes has because their system works and my log-in is my e-mail. I repeatedly completely uninstalled iTunes and wiped it from my registry in hope a clean install would fix the problem but it never does.
My OS is Vista Home Premium Edition 32-bit and no picking on my OS I been working to get a new computer but that isn't happening anytime soon so I work with what I got.

Even removing the .xml files doesn't make a difference. Also, I now installed another update of iTunes, but still having the same problem, and this time there are no .xml files or preference files whatsoever in the Application Data and Local Settings\Application Data iTunes folders. It seems like for some reason iTunes is unable to create these. What should I do?

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