I can't delete iTune folder from C:\Program Files.
Even after logging in as local administrator, it would not let me erase.
So I checked the properties of that folder and discovered that Sharing & Security tabs were missing from the property window. Please see the screen shots.
It looks like at one point you had an iPod connected to your computer. You may need to connect it to the computer to access that folder. It is probably connected to that. The other thing to look at is whether or not you have iTunes in your programs list (add/remove programs). It's possible that you had it at one point and then uninstalled it, and the folder didn't get removed. The folder appears to be empty, so having the folder there should not be a big concern unless you are getting other errors.
Right after posting the question, I had my user restart the computer in safe mode and logged in as local admin and deleted the folder.
Restarted PC in normal mode and was able to re-install iTune.