i found out how to create an iTunes account without a credit card or paypal.
here is how you do it step by step
1. go to http://myinfo.apple.com/
2. create a new account by clicking 'click here' shown below
3. fill out the form, for state/province put in ur country, (eg. scotland, ireland, wales etc
4. your account should be created now and you will recieve an email.
5. go to your iTunes pc programme and go to iTunes store and click sign it.
6. sign in with the account details you created, it will say the account has not been used with itunes so click 'review account'
7. agree to the terms and click next
8. now fill out your address as your payment method and ignore the payment at the bottom
and click next
9. you will now be signed into iTunes store!