I've just reread the entire thread and saw you mention iTunes 7.6.1. 
That version of iTunes has been widely reported to have broken 
AppleScript support on some machines (no pattern visible there, yet), 
making it impossible for third party applications to control it at 
all. This affects not only Remote Buddy but pretty much every other 
app that uses AppleScript or Apple Events to control or get info from 
iTunes. This includes Growl, GimmeSomeTune and many more.

Until Apple fixes this bug, the only available solution is to switch 
back to a previous version of iTunes and report the problem to Apple 
so they are aware of just how widespread the problem is. More info in 
the 7.6.1 forum thread and in the FAQ (=> there's also a list of links 
to references on the issue).

Best regards, 
Felix Schwarz