Update to this problem. First off I got this fixed. I don't know what part of the procedure actually worked but this is what I did. First I updated to the latest version of Itunes as there was a small update about a week ago that made some mention of audio problems. That update did not change anything. I still would update though.
Then I went into preferences and changed things on the playback to direct sound vs windows audio session. That did not work either. And just so you know, after each of these steps I did a complete shutdown of my computer and started it back up just in case something needed to be loaded.
My next step was this. Under the Itunes Help menu there is an option to run diagnostics. I figured what the heck I will give that a try. Basically what that does is first it checks your internet connection with Itunes, then it checks whether there is a CD/DVD device in your computer and if it is working and lastly it checks the ability to sync with a phone. So I am thinking to myself well none of that seemed related at all the audio problem but at the end of the diagnostics, a little window pops up showing what looks like different support drivers running and their version numbers. I noticed something in there and it said that Quicktime was not installed. Well, I know I installed Quicktime on this system so why would it be showing that message.
So you guessed it, I went and downloaded Quicktime and ran the installer. There was no option to install it (as it is already installed) but there was an option to repair it. So I clicked on that and let it repair Quicktime. Went back into Itunes and like magic the audio was now working once again.
I am not going to sit here and say what it was that actually fixed the problem. Based on what I did, I suspect that maybe some file somewhere along the line got messed up and in the Quicktime repair option it fixed things. That is certainly what it looked like.
One other thing I would like to point out. When I started having these problems, I noticed that when I would quit Itunes a little dialogue box would come up saying other applications were using Itunes and there was a little timer counting down 10 to 15 seconds before Itunes would then quit. I could try to exit Itunes once more and then it would close or if I waited until the timer went to zero, it would close itself. Prior to this audio problem I had never seen that little window ever in Itunes.
Now that the Itunes audio is working again, that little dialogue box does not come up anymore. Not sure what the issue with that was but it is fixed now too.
I honestly am not sure where the problem was in all this. Was it an Itunes problem that happened during an update. Was it a Windows update problem that impacted this? Who really knows. All I know is that is what I did and things are working now so give it a try.