What's the easy, quick fix?
One reported workaround last night, but it isn't as convenient as it might be.
The problem lies with the CoreAudioToolbox.dll version 7.9.4.0 included in Apple Application support version 1.4. On 32-bit versions of Windows that lives in:
C:\Program Files\Common Files\Apple\Apple Application Support\CoreAudioToolbox.dll
On 64-bit versions of Windows it lives in:
C:\Program Files (x64)\Common Files\Apple\Apple Application Support\CoreAudioToolbox.dll
If you can track down a CoreAudioToolbox.dll version
7.9.3, included in Apple Application Support version
1.3.2 (like the one contained in the Safari 5.0.2 installer, or the iTunes 10.0.1.22 installer), and swap out your 7.9.4 version of the dll for the 7.9.3 version, you might well be able to start importing and connecting again.
Only tested so far on XP 32-bit systems. Credit to gduc for the suggestion and test:
http://discussions.apple.com/thread.jspa?messageID=12576816#12576816