Is seems like there were many users on the Apple forum with the same issue a while back. From what I understand the connection problem is caused by a program not being able to communicate directly to the server.
Are you running any of Norton's or McAfee's Internet security products or anything similar; or an antivirus/antispyware application? There have been reports that some such utilities treat an upgrade to iTunes as a new application and can block the application from running. So you may have to go in and reset the utility to allow iTunes. The same thing can happen if you upgrade the security product (this has particularly been a problem with recent McAfee upgrades).



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