Okay, I got mine working, I think...no more lightning bolt through my iTunes Match icon on the Music folder (under library), and now I can update my Match library without issue. Now, I'm not sure exactly what step made it work but, most of all, for Windows 7 users, run iTunes with elevated privileges (which I think is the real trick):
- Launch iTunes as an admin (right click on your iTunes icon and click "Run as administrator."
- When iTunes loads, sign out, then sign back in.a) At this point, upon signing back in, my Match icon was gone from the Music folder, and it was looking for me to turn on Match again.
- De-authorize the computer, then authorize again.
- Now turn Match back on (the process seems like a quick check, and did not take as long as the first Match scan).
- After iTunes Match is complete again, I was able to close iTunes open again with "Run as administrator," and my match was all good.
- Close iTunes and reopen without "Run as administrator" and it's still good, updates Match with no issues.
Now, you might be able to skip 5 and just run without elevated privileges, but I figured just in case iTunes needed to write to a protected folder one last time upon launch. Hope this helps any Windows users out there, not sure if the Mac OS users having issues have something similar to elevated permissions when running an app, but I would try that.