This drove me nuts too. Except my symptoms were a soft of reverse video effect in the iTunes main screen plus the screen not repainting after menu topics/dialogues were dismissed. I found:
http://www.head-fi.org/forums/f46/itunes-giving-me-detected-problem-audio-configuration-error-307713so after removing the firewall (just shutting it down from the tray had no effect) iTunes was back to normal.
I spent a _lot_ of time removing/re-installing audio/sound drivers and iTiunes/Quicktime before I found the above post. Viva Google!