APPLE ID HAS BEEN DISABLED

I suggest you contact Apple.

Apple ID: Contacting Apple for help with Apple ID account security

If resetting your password and logging out and back in then try contacting iTunes Support : http://www.apple.com/support/itunes/contact/ - click on Contact iTunes Store Support on the right-hand side of the page

If you disputed the charge through PayPal and not through iTunes then that might be why your account is disabled

You should have gone through Apple to resolve the unauthorized charge. By simply disputing the charge, you basically reneged on your obligation to Apple. Your account will not be re-enabled until you straighten it out with them.

And how do I do that? I have a similar paypal issue.

How do you do what ? If you mean dispute a charge then to contact iTunes Support use the link in my above reply

There is no charge to dispute. I accidentally terminated the billing agreement via paypal (I thought there was a misuse but I was wrong) and now cannot figure out how to reinstate.

For the third time; contact iTunes support

Thanks -- done -- getting the contact info wasn't easy and links provided did not direct me there.