Might be an idea, just a small thing to try is to temporarily disable the iTunes look for shared libraries, and also the LW iTunes support. Then re-enable each. Might make no difference, but worth a try. And yes, Java is probably related here so making sure Java is properly installed with the updated version is important. Too often Java online installations become corrupted.

BTW if you get a message saying Java is already installed, then use the Add/Remove Programs Control Panel to remove all versions of Java. Then run this utility: Crap Cleaner to clean up the registry, then reinstall Java as suggested with the OFFLINE version.