I uninstalled everything Apple, reinstalled iTunes 10.3, and all is now fine. Here are my detailed notes, which follow suggetions from this forum and from support.apple. Thanks to all contributors!
(I)
Followed suggestions in support.apple.com forum:
1. Remove iTunes and related components from the Control Panel
Use the Control Panel to uninstall iTunes and related software components in the following order. Then, restart your computer.
iTunes
QuickTime
Apple Software Update
Apple Mobile Device Support
Bonjour
Apple Application Support (iTunes 9 or later)
(II)
Navigate to your iTunes music folder and rename the iTunes Library.itl file to iTunes Library.itl.bak.
Open the folder Previous Itunes Libraries; find one that created before 10.4 was installed, then copy that file to the same directory where you renamed iTunes Library.itl.bak and rename the file you copy to iTunes Library.itl .
(III) reboot
(IV) Cleaned up the register with jv16 (which I like alot: http://www.macecraft.com/)
Took 14 min
(V) Verify iTunes and related components are completely uninstalled
In most cases removing iTunes and its related components from the Control Panel will remove all supporting files belonging to those programs. In some rare cases those files may be left behind. After following the previous steps, you should confirm that the following files and folders have been removed and if any are left behind, remove them now:
C:\Program Files\Bonjour
C:\Program Files\Common Files\Apple\
C:\Program Files\iTunes\
C:\Program Files\iPod\ Note: Follow the additional steps at the end of this article if you receive the alert "Cannot delete iPodService.exe: It is being used by another person or program" when trying to delete this folder.
C:\Program Files\QuickTime\
C:\Windows\System32\QuickTime
C:\Windows\System32\QuickTimeVR
All gone were except for C:\Program Files\Common Files\Apple\ which has Mobile Device Support.
Could find no Services with that name. Deleted the folder \Program Files\Common Files\Apple successfully
Uninstalled Mobile Me Control Panel
(V) Reinstall iTunes 10.3.1 (is actually 10.3.1.55) from http://support.apple.com/kb/DL1103
Before I approved the update, I turned off: automatically update iTunes and other Apple Software.
This also installs QuickTime 7.69.80.9
It worked! Could get to Apple Store; it recognized my iPhone (altho the USB drivers show up under Imaging Devices: Apple iPhone #2 and Apple Mobile Device USB Driver)
WOW! I never want to go through that again!!
I no longer trust Apple software... will have to Google any update before I install it.