It's being unusually cryptic for an Error 7.
Usually if the .NET framework is up to snuff, an error 7 indicates trouble with the Apple Application Support installation. But in those cases, usually there's a preceding message about one of the Apple Application Support program files.
On rare occasions (had it happen to me once myself while installing and uninstalling stuff by way of troubleshooting experimentation), the 7 can indicate trouble with one of the other associated programs (like QuickTime, perhaps BonJour). So, perhaps the sensible way forward for us under the circumstances is a complete uninstall and reinstall of all iTunes and related componentry, as per:
http://support.apple.com/kb/HT1925
If you get any error messages with any of the uninstalls, deletions or reinstall, let us know what they say.
If, however, the process seems to go through swimmingly, does your iTunes start launching without the 7?