iTunes 9.2.0.61 cannot connect to iTunes Store

To make a long story short, I have been through the forums and tried everything to no avail. I was asked to update iTunes in order to update my iPhone to ver 4. This was 3 days ago and I still have not updated my iPhone. I have updated iTunes to the above and cannot connect to itunes store. I have tried the forums which seems to have improved things but it is still not working. I have access to the iTunes store from my laptop and iPhone (Wifi) When I run iTunes and try to access the store it says "iTunes could not Connect to the iTunes Store. Make sure your network connection is active and try again"

If I go to the iTunes help tab and Run Diagnostics, the Network connectivity test passes and verifies all ok???????????????

I am not an IT guy but to my way of thinking, something is pointing iTunes to the wrong place when it wants to go to the store. I have spent enough time trying to fix my PC after apple broke it and would like to just upgrade my iPhone 3gS. I am waiting for an email from Apple since yesterday but would appreciate it if someone here could help me get this sorted.

Herewith the additional info that may be required as well as verification that I should be able to connect to iTunes store.

Microsoft Windows XP Professional Service Pack 3 (Build 2600)
Dell Inc. Vostro1510
iTunes 9.2.0.61
QuickTime 7.6.6
FairPlay 1.8.20
Apple Application Support 1.3
iPod Updater Library 9.2d4
CD Driver 2.2.0.1
CD Driver DLL 2.1.1.1
Apple Mobile Device 3.1.0.62
Apple Mobile Device Driver 1.49.0.0
Bonjour 2.0.2.0 (214.3)

iTunes Serial Number 50D4A26C8592F897

Current user is an administrator.
The current local date and time is 2010-06-24 11:01:57.
iTunes is not running in safe mode.
WebKit accelerated compositing is enabled.
HDCP is not supported.

Video Display Information

NVIDIA GeForce 8400M GS


** External Plug-ins Information **

No external plug-ins installed.

iPodService 9.2.0.61 is currently running.
iTunesHelper 9.2.0.61 is currently running.
Apple Mobile Device service 3.1.0.0 is currently running.

** Network Connectivity Tests **

Network Adapter Information

Adapter Name: {D25AF4E1-5629-4695-A88C-33EB9B542680}
Description: Dell Wireless 1395 WLAN Mini-Card - Packet Scheduler Miniport
IP Address: 192.168.0.116
Subnet Mask: 255.255.255.0
Default Gateway: 192.168.0.252
DHCP Enabled: Yes
DHCP Server: 192.168.0.250
Lease Obtained: Thu Jun 24 07:32:34 2010

Lease Expires: Fri Jul 02 07:32:34 2010

DNS Servers: 192.168.0.250
192.168.0.250

Adapter Name: {6322B6B8-7B23-4D8C-829C-D093ADFB2A84}
Description: Realtek RTL8168C(P)/8111C(P) PCI-E Gigabit Ethernet NIC - Packet Scheduler Miniport
IP Address: 0.0.0.0
Subnet Mask: 0.0.0.0
Default Gateway:
DHCP Enabled: Yes
DHCP Server: 192.168.0.250
Lease Obtained: Wed Jun 23 13:50:08 2010

Lease Expires: Thu Jul 01 13:50:08 2010

DNS Servers:

Active Connection: LAN Connection
Connected: Yes
Online: Yes
Using Modem: No
Using LAN: Yes
Using Proxy: Yes
HTTP Proxy: 192.168.0.252:8080
SSL 3.0 Support: Enabled
TLS 1.0 Support: Enabled

Firewall Information

Windows Firewall is on.
iTunes is enabled in Windows Firewall.

Connection attempt to Apple web site was successful.
Connection attempt to iTunes Store was successful.
Secure connection attempt to iTunes Store was successful.
Secure connection attempt to iPhone activation server was successful.
Last successful store access was 2010-04-21 19:51:31.

Message was edited by: Gerrie Coetzee