Hellofidelity and Arni: Just a follow-up note on the solution. I had upgraded to iTunes 9.0 and the trouble started. Today a buddy came over and suggested we see if iTunes had another upgrade. Impossible, I thought - its only been about a week. Sure enough 9.1.1 was available. We downloaded and problem solved. Music sounds great again. Thanks for you input, I appreciated it.
Sound Card Recommendations for the iMac
It looks like there is something wrong with the internal sound card in my iMac desktop. The music is now scratchy and mildly jumbled. Having eliminated every other possibility that I can think of - have others been required to replace the sound card and if so . . . .what did you get? Same stock part or upgrade?