Folks,s
Just went through the following steps to resolve the issue.
Download 10.1.1 from iTunes download page but DO NOT install.
http://www.apple.com/itunes/download/
Copy your iTunes LIbrary to backup drive and/or desktop
Reference this support article
http://support.apple.com/kb/HT1224
Follow article but DO NOT perform steps, 2 & 6 which come after the restart. These steps call for deleting your iTunes library!!!
Once complete with article, install iTunes 10.1.1 from download. Then before starting iTunes move your iTunes library back to its original location
This worked for me.
Good luck!!