Hi DSG,
We talked about this a bit over on AA, but since then I have been able to solve this problem by using a different CD-Drive. With the USB external CDRW that came with my laptop, I had the same experience you did.

Then I tried my IEEE 1394, external LaCie CDRW and set it up on my Dell Latitude D400 laptop, running XP pro and iTunes 5.0. I checked the "use error correction" option and then imported from CD without any problem.

So the problem is, at least in part, dependent on what CD drive you're using. I don't know if certain drives lack some hardware feature that permits error correction -- or if iTunes has a drive-dependent bug on it's side.

Good luck. It is a bummer that this got hosed in the software upgrade. I have this kind of problem at work all the time with application upgrades, plugin upgrades, db upgrade, patches to the OS etc. Something always breaks, alas.

One more case of someone running Dell Hardware and Windows XP who tries to do something that might be fun or productive and can't mae it work. Kim Komando runs hours and hours of radio shows dealing with nothing but the problems associated with that sort of hardware and software. When will people learn. Step one is to buy one of a number of fine computers with little apples on them. They work.

Does your Plextor also support IEEE 1394 (Firewire)? If so, try connecting this way rather than via USB. A fellow over on the Computer Audio Asylum (hermanesque) had a Plextor drive which he attached via a pci-firewire adapter (since his computer didn't have the IEEE option). His experience was problematic via USB, but clear sailing via Firewire.