iTunes not saving Preferences

I've had this set-up correctly before & all was fine, but I've had to reinstall & now iTunes will NOT save the preferences I set. I am using iTunes 10 on 7 Pro 64Bit SP1.

Below is a pic of how I had it set-up before & I was able to delete the iTunes folder that was automatically placed is My Music folder of the C: w/o any problems.

But now, even though I've set it up just as before, iTunes resets back to the beginning; as though it's a brand new installation & reverts all my preferences. As well as replacing the iTunes folder in My Music folder of the C:.
Anyone know why this is happening?

I found a work-around (I may have done this before, it was a while back). After I set all preferences to the way I want, I just hid the iTunes folder that was automatically created in My Music folder on the Orb Menu. That has solved the preferences problem.

But for another problem ... iTunes will not import my CD's. I've tried all 5 settings (Show CD, Begin Playing, Ask To Import CD, Import CD, Import CD & Eject). The only thing that happens when I put a CD in is that iTunes will open, nothing else. I've tried resetting iTunes, restarting the comfuser & found no help. Anyone have this problem?