cigga24 may have it. the key is that all your music files should appear in WMP BEFORE running MusicBridge. You can monitor the my music folder but in my experience this sometimes misses stuff. At least to start with you should use File > Add To Library > Add Folder... and choose the uppermost folder of all your AAC tunes (probably My Music/iTunes). WMP will do stuff for a while at the end of which all you music files will appear in the WMP library. They will look odd, because they will just have a name, and that name is simply pulled from the filename.
Then you run MusicBridge.
Couple of points. The dots in this case actually represent files found in iTunes but not in WMP. If it finds a match you will see the message: "Josephine information being copied to Joesphine" for each match.
Additionaly in point 7 you mentione the WMP db being recreated, that is an automatic function of WMP.
Sorry for the confusion and I hope this helps, hopefully I'll find some time to actually write some documentation...