There's a procedure involving XML during launch that Podner uses to obtain the actual location of the user's iTunes music folder. It uses Apple's NSDictionary class to read /Users/[your username here]/Musc/iTunes/iTunes Music Library.xml, then finds and stores the Music Folder key. It sounds like NSDictionary is hitting something that prevents it from completely initializing itself from that file.
The ideal way to troubleshoot this would be for us to get a copy of the file so we can test with it here and analyze it, byte for byte, to try to determine why NSDictionary would not work with it. The next best method would be for us to get the first few pages of a hexdump of this file, so we could at least examine the actual bytes. If you can send the file, please compress it using the Finder's "Create Archive" option and send it to
support@splasm.com. If not, would you redirect a hexdump to file and send us the first few hundred lines of it? Thank you!