This is the other thing I found in my research. If you see this process running when looking at task manager (right-click on the windows bar->task manager->Processes tab), you need to stop it now and stop it from starting back up. One good way to stop it is to rename the application file: go to C:\Program Files\Common Files\Apple\Apple Application Support and rename the file somehow (like rename it to APSDaemon_original.exe)
I tried this first and my problem remained. Then I discovered the Adobe Flash updater installation fixed the issue. Then I went back and renamed APSDaemon_original.exe back the correct name. Then I noticed that iTunes playback still worked correctly but now iTunes would not exit out and start back up, which was another symptom I had along with the interference issue. So I manually killed APSDaemon.exe in task manager, renamed it back so it wouldn't ever start again, went into MSCONFIG (start-> type in msconfig in the start box) and unchecked the "Apple Push" box on the startup tab.
To read more about APSDaemen.exe,