iTunes 2.0: "Preferences could not be displayed" Alert

If you have a large number of files in your music library, you may need to increase iTunes memory allocation to set preferences or use iPod.
Symptom

When you click the Effects, Import, or Burn tabs in the iTunes Preferences panel, an alert box with this message appears:
Solution

The iTunes music library can list approximately 32 000 songs. If you have a lot of songs and experience slow performance, if you use iPod, or if alerts like the one above appear, follow these steps:
Published Date: Feb 18, 2012