DM6 does not see iTunes songs (playlists appear)

Here is my current situation

Running Windows 7, BDM 6, iTunes 10.1

Syncing my Bold 9700 with contacts and cal from outlook works fine. Media Sync is reporting errors when syncing iTunes playlist.

I can see my playlists from Itunes, after highlighting a playlist I see that some songs (most) are not found. iTunes can play the songs that are reported as missing in BDM.

My iTunes library is on a network share so that three computers can have access to the library. (not at the same time)

Not sure where to go from here ?