I tried to follow the method you described ditto.
When I run the batch file, it created application data folder, but did not create documents and settings folder.
It also opened itune library but it was from pc and not from the flash drive
When i disconnected my USB drive and reconnected, it did not autorun.
I checked and rechecked every thing, nothing seems to be wrong.
Why I am not able to get the desired results
I am using Windows Vista Ultimate 32 bit
Request for your kind help