Finally solved it.
This is what i done (windows 7 64-bit.. but im sure will work with 32-bit).
Start > Control Panel > Uninstall Program > Sort by application creator, so that all "Apple Inc" programs are in one place > Unistall all of them.
Then
Start > My Computer > C Drive > Users > **Your User Name** > AppData (If you cant see the folder "AppData" then you need to show hidden folders which is in the Oranganize menu on the top left... then "Folder and Search Options" then goto to the "View" tab and somewhere in that list it gives you the option to show hidden folders") > Now select "Temp" > and highlight all files in the temp folder.... hit delete... some wont delete.. so just skip those ones.... now restart.
Download latest itunes (if you havent already) and install.... it should work. it didn for... after several hours of trying to sort it out.
Hope it helps. Apple are no support what so ever...