Had to call 800-My-Apple to resolve without charge
My problem was the same as everyone else's... Account disabled; resetting the PW did not solve the problem. However, what I discovered was that my iTunes account had been hacked and so Apple Security LOCKED my ID. Therefore, no matter how many times I reset my PW, my ID would not have worked.
I was told at the time I contacted iTunes about the charges, that "these iTunes accounts get hacked ALL THE TIME..." So now I just don't use iTunes. Period.
After spending two hours resetting my password at iForgot several times, I finally called MyApple and demanded to speak to a human to resolve the issue. They waived the fee and were extremely friendly, helpful and apologetic.
Here's what happened... So apparently, my account was LOCKED, even though I was in contact with iTunes, reset everything several months ago as they suggested, worked with my bank to get the financial portion resolved, updated my payment information with iTunes...
I asked MyApple what to do in the future if fraud ever happens again to ensure my account is not LOCKED. I was told to contact them at the 800 again after contacting iTunes and the bank.
So for all of you out there, first contact iTunes about the fraud. Then contact your financial institution. THEN, ALSO CONTACT MYAPPLE, who will contact the security department, who will verify your identity, and then unlock your account.
Less than 30 seconds after the phone call with MyApple, I was able to update my applications, etc. Problem solved.
If you have discovered you have more than one ID and can't figure out why... consider whether someone hacked the account and changed things around right under your nose like happened to me.
Have a great day!
--rabidconsumer