Follow the following steps and create your free itune account !! feel free to post your comments if you have any problem in any of the following steps. These are the latest one with the 6 Nov 2010 Update.
Click on the images for Larger View
Now click on Free app and you will see a login pannel
Now click on create new account
Check the terms and conditions and click continue
Enter your information
Check on the last option of payment methods “NONE” and after filing your information click continue
You are Done =)) congratulations !!