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Thanks for the info. That sounds like a pretty standard setup then 
(and it's identical to mine, with which I'm not experiencing any 
issues).
What is causing the problem I don't know. It definately seems to be an 
issue with the AppleScript-support of version 7.6.1. The only solution 
for the time until Apple fixes the problem seems to downgrade to 
iTunes 7.6 (the same user I mentioned previously wrote me that the 
problem disappeared for him after doing so).
In the meantime, try running this AppleScript snippet in Script 
Editor.app (/Applications/AppleScript):
tell application "iTunes" 
{artist, duration, rating, album, genre, name, id, year, persistent 
ID, database ID} of current track 
end tell
It shouldn't take longer than the fraction of a second.
And then
tell application "iTunes" 
data of artworks of current track 
end tell
which shouldn't take longer than 5 seconds (mainly because Script 
Editor needs to display binary data as hex values).
Does iTunes hang on your machine on either of the two scripts?
Best regards, 
Felix Schwarz