Okay, I did some playing around. Not exactly sure what I did as I did multiple things, but I think it had to do with deleting the old preferences and that fixed it. It froze again, but I think the program 'Windows 7 Firewall Control' is causing the freezing problems (even though I allow iTunes to send outgoing and incoming information). Thanks Dinesh for the link! I checked there before and none of the steps worked but I guess if you do all of the steps together, it works!