Hi Jim, welcome to Apple Discussions!
There are two issues here:
1 - Q:
When I try to set Itunes as the default player the following message occurs: error occured while updating default player for audio file types. You do not have enough access privileges for the operation.
On your computer, there are probably different accounts on it (these are Windows user accounts, not iTunes accounts). Maybe one is the "normal" account (less access) while one is the "administrator" account. Try logging onto the administrator account and doing this action again.
2 - Q:
The screen shows "do not disconnect"...Also I believe you shouldn't just pull out the cord if the "do not disconnect" message is on??
Yes, that is correct. Even though is sometimes works fine for some, this isn't a good idea in general.
When your iPod displays "Do Not Disconnect", you'll have to first eject it (term for safely disconnecting iPod) from your computer before unplugging it.
There are a few methods. Learn more about them in these two Apple Support articles linked below:
Safely Disconnecting iPod
About the Do Not Disconnect screen on iPod
I hope this info helps you,
-Kylene
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