Update 2: gHacks.net shows another way to create a free US iTunes account. This method requires a gift card number, but it doesn’t even need to be valid. Check it out.

Update 1: Malaysia now has its very own iTunes store.. but only iPhone and iPod touch apps are available through it. If you set up an account with your credit card at the Malaysian iTunes store, you’re still unable to access all the goodies in the US store. Another thing for you to consider.

Unlucky residents of countries without iTunes Stores miss out on a lot. Residents of these countries, Malaysia included, can’t start an iTunes account because the iTunes Stores only accepts credit cards from their respective countries. And no, an iTunes account is not the same as your Apple or .Mac account.

This means that we can’t buy any of that awesome content in the stores (the US store especially) and are denied access to the free content and one of iTunes 7’s small but cool features, i.e. getting album artwork automatically from the store. Luckily, there is an easy solution – iTunes gift cards.

With an iTunes gift card, you can create an account without needing that pesky credit card. If you’re able to visit a country with an iTunes store (US, UK, other European countries, Australia and Japan), or have a friend visiting, make sure you pick up a few iTunes gift cards.

Unfortunately, if you’ve not done it before, redeeming an iTunes gift card can be slightly confusing. Here’s what I learnt when I redeemed my iTunes gift card last weekend.

First of all, the link to redeem the card is rather obscure. Look in the quick links box on the top right of the page and you should find it.

You’ll be brought to a license agreement page that looks like below. On this page, you’ll see a link to a different page if your credit card billing address isn’t in the US. Don’t be fooled! Since we’re not using a credit card just create an Apple Account for the store (in my example, I chose the US store).

You’ll need to provide an address to start your account, and since you’re registering for an account in the US (for example), you’ll need a US address. Here’s where it’s helpful if you regularly sent that distant aunt of yours Christmas cards. Use her address, or a buddy’s address.

Note! US is a country with many, many, tax laws. Generally, digital downloads are not taxed, but the state of New Jersey and a few others have decided to be ‘progressive’ and has started taxing digital downloads, including iTunes content, from October. What this means is, if that distant aunt of yours lives in a state which taxes your downloads (see a list here), use another address. Somewhere in California or New York would be great.

After filling out some more information, iTunes will send you an email with your account details. After that, you’re done!

Once you’re done setting up your iTunes account, it’s time to start buying your favourite content. And like I hinted at the beginning of this post, not everything on iTunes costs money. There’s a good selection of free stuff that’s updated weekly. These range from music (I downloaded Sarah McLachlan’s Silent Night from her new Wintersong album), pilots of TV shows, teasers and lots of other great stuff.

And of course, you’ve now got access to the biggest library of legal digital content in the world. Enjoy.

Merry Christmas!