If you're reluctant to reverse your entire folder redirection decision, then there is the option to trick iTunes (and other applications) by use of a SHIM.
For the uniniatiated - SHIMS were brought in as security layers/fixes which interact at a layer below the application, when it makes an API call to the OS.
Anyway - without turning this into a 101 on AppCompat, you need the following installed:
ACT - Application Compatibility Toolkit - http://www.microsoft.com/download/en/details.aspx?id=7352
Run the Compatibility Administrator and create a New Fix. The SHIM you're looking for is CorrectFilePaths
The parameters you're looking for are going to be something like:
"<redirected path>";"<localpath>"
\\server\share\Stevej\AppData\Roaming\Apple Computer\Itunes;c:\Users\Stevej\AppData\Roaming\Apple Computer\Itunes
USE QUOTES
Or if you wanted to you can point it directly to the file iTunesPrefs.xml. (This will allow you to accept the EULA once and keep that setting)
Of course, you don't want to do this for just one user... Read On.
While this works using certain varibles, it doesn't seem to work with %APPDATA%. %APPDATA% is renamed to "%userappdata% by Compatability Administrator, so don't fall into that trap.
Instead I've had to use \\<hardcoded server>\Users\%username%\etc;"%userprofile%\etc. If you're in a fairly open environment, you can even send the redirection to the all users profile.
You then need to add in all the executables (iTunes.exe and iTunesHelper.exe etc). To make this fix work next month when a new version is released, remove their file version information. And hopefully the month after that things will be fine too.
Good luck in your environment!
If anyone has a play around with this and gets %APPDATA% to work please let me know...