I am having a problem too, but a completely different one. When I load my computer and open iTunes, it tells me to update, so I do. Then, it installs fine, then freezes up at the end when it is installing modules. So, I close it, and open iTunes again, and it says that some CD burning software I have is messing up its settings and I have to reinstall. So, I reinstall, then it freezes up at the same spot, so I close it, and the whole ordeal starts over again. I don't have CD burning software, or anything related, and it works fine on my other computer without the update, I don't know what's wrong. I have reinstalled nearly a dozen times and rebooted several times, but nothing seems to work. Is there something I am not doing right, or am I missing something? Or does anyone else know something about this? I'm probably going to end up reinstalling everthing on my computer, because it's only 8 or 9 months old, and running as slow as DSL, even though I have Comcast High Speed Internet. I haven't updated my iPod since I got 7.0, so I haven't seen symptoms yet.
My only possible suggestion would be to uninstall it (if possible) and then reinstall it from the CD you got with your iPod (If you have an iPod) and then never update it. Otherwise, go to some website with a download that is outdated, and download it. Or, if you run Windows and haven't done anything important, you could do the System Restore until before you installed the update, but only do this is you didn't do anything important or received any important emails, or installed software recently, as it changes everything back the way it was, emails, software settings, etc.
If these don't work, then I don't know what else to do except contact support.
EDIT: You can go to
http://docs.info.apple.com/article.html?artnum=93976
to get help on uninstalling it, and then, if you have your iPod and iTunes install CD, reinstall it and re-register.
ANOTHER EDIT: You can uninstall your current version
after making a backup of your library and keeping it on your Desktop or in a place NOT in iTunes or iPod folders. then uninstall it completely. You can go to
http://www.oldapps.com/itunes and download version 6.0.5 or whatever version you want, then import your library. I wouldn't recommend this unless it is a last resort or you know a bit about computers.
It might not totally work! I am NOT liable for any damages! You have been warned!