I really hate to post this up and this is a very frustrating problem. A lot of people also had this problem but no solution. I have been to 4 Apple Mac Techs through ATT&T and they could not figure this out too. Very disappointing! They actually gave up on me and asked me to find out on my own. I had to find out a very hard way. This eliminates the problem once and for all.
I found this in the Mac forum from Gjies. Thanks to him... all is well.
All you have to do is to
1) Quit iTunes
2) Open System Pref to the Sharing pane
3) Highlight your computer name in the top section and in the edit button - change the name
4) Restart your computer
5) Start up with iTunes
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