Sounds like classic ITBFS. Been there, hard to "cure" once it flares up. I won't tell you how long I had to lay low with my most extreme and running-stopping case.

I use Speedplay pedals because of my history with ITBFS (this is what Mr. sports medicine Dr. Testa suggested way back when I was quitting running and starting cycling). I've found that stretching often aggravates it (plus it's very hard to stretch since it's not "muscle"--it's fascia, which is without blood and doesn't like to stretch), though I do it anyway to try to get as much flexibility in there as I can (the hip insertion actually IS muscle and stretchable). Ice is good, as is massage, though it can really hurt. I have a roller that I use everyday (usually in the evenings, whilst soaking in the hot tub) on the entire band, from the hip down to the insertion below the knee. I think that really helps.

Yah, lots of Aleve (Dr. Testa recommended that as well instead of Vitamin I[buprofen]) and take it easy. Get one of those rollers. They really rock (they have them at Road Runner Sports--"the stick"

Good luck. It stinks, believe me, I know.