Issue with iTunes 11 syncing to iPhone 4 iOS 7.0.3?

I use iTunes on my family iMac, my iTunes, I believe, is one update below the current software and my iPhone is on iOS 7.0.3. Music purchased through iTunes syncs correctly and will play properly. Songs that I have obtained through CD's, however, are now grayed out and have a red square with a circle around it. When I click on the song, it will cycle through my library until it can play a song. New songs that I have imported from CDs will just not appear at all on the library that is in my phone, but shows up in the library on my computer.iTunes will also not restore songs that I have removed from my iPhone but are in the cloud. Is there any possible way to fix this issue? Everything has been working fine until iOS 7 and the new version of iTunes.

Make sure everything is updated and re-rip the cd's

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