I am facing the same issue: the last iTunes updates, recommended by the Apple Update software, has corrupted my iTunes setup (MSVCR80.DLL)
According to the event viewer, the failure seems to be be cause by Apple Mobile Device as it apprentely did not cancel its subscription to the XP notification service before being stopped.
So, I am also in the process of uninstalling/reinstalling, as forum indicates this should resolve the solution. One thing to report already: the "Apple Mobile Device Support" program fail to uninstall ;( I tried to manual stop the corresponding service, to put its restart in manual mode, to reboot ....but it still fails to uninstall.
OK, let's cross fingers hoping that the re-installation of iTunes will clean the situation in that respect.