I would also love to know how to fix this but I am pessimistic..
I have never been able to run itunes from my digi 002 to my monitors without the sound being unbearably choppy. I use a switch to run from my Soundblaster card into my KRK's when using itunes. Thankfully my KRK's have dual sets of inputs (Digi002 to the TRS inputs and SB to the RCA's). Of course we don't want to run both simultaneously or there will be smoke and fire (from me when they explode)!
When I noticed this I contacted Digi-Euro Tech Support who stated at that time: "Unfortunately, iTunes 7 (QT 7) is not compatible with the DigidesignWave Driver and will cause the "choppy" audio problems"... :roll: