theKenty,
The problem cleared up for me after I edited the plist file. About a week after editing the plist file, I also downloaded updated versions of itunes (now using 11.0.1.12) and icloud control panel (v2.1.1)
I have not had any repeat of the problems when my work VPN's password changes.
One thing to note is that when I am using my work VPN, I need to enter my login credentials twice when using itunes. I do NOT ask itunes to remember my details.
If you have asked itunes to remember your login credentials then that may be the cause of the problems you have when your password changes.
Hope that is of some help.