I was looking into the issue you are describing and found a resource that may be able to get iTunes back on track for you. It is an article named iTunes for Windows: Additional troubleshooting tips for burning issues found here: http://support.apple.com/kb/TS1374.
If after following the instructions in this document you still can't read or burn discs, try the following:
If you open the article and look at that resolution section, these are listed there and each category has its additional information.
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