Phew! Thought it was just me! I had someone break into my iTunes account a few months back, and it was giving the exact same message.
Apple still haven't got the ability to run a successful web service. The stupid thing is, it would be cheaper and more reliable to use Amazon, Microsoft and Rackspace as their cloud providers. The three of them combined are the best in the industry, way ahead of Apple who have had huge problems with their fake cloud (I call it fake as they are running it out of 1, maybe 2 datacenters - both in the same country, meaning poor redundancy).