Figured out my issue!
Background:
Win 7 64 bit
Itunes 10.5 public release
Iphone 4
Symptoms:
Iphone 4 backup/sync hanging
Itunes Store was blank
Fix:
Uninstalled AVG Family Safety (like net nanny, an online website monitoring app for my children)
ran command promt as administrator, typed netsh winsock reset
Rebooted
That fixed boy my backup and itunes store issue. My suggestion is if you have anything like this, Norton Online Security, Net Nanny, AVG Family Safety, Safe Eyes, Covenant Eyes, etc. you should start by uninstalling it and see if it fixes your problems. Hope this helps someone.
Erik