When Steve Jobs announced iTunes 7 I couldn't reload the download page fast enough. I was anxious to try out the first whole number upgrade to Apple's venerable jukebox application in almost a year. In the 10 or so days that I've been using the new iTunes I've had little or no problems with it. Unfortunately others haven't been so lucky.
Almost since day one there have been a vocal chorus of user complaints about iTunes 7 and specifically with iPod software 1.2 update. A large number of complaints on Apple's discussion boards are with the iPod 5th generation, including spontaneous rebooting, crashes, freezing and problems with album artwork. A temporary fix is to revert back to iPod software 1.1.2, but the process isn't trivial.
Apple has posted an iTunes 7 FAQ containing links to knowledge base articles that address problems with booklets, album artwork grouping, audio problems, AirTunes and games. If you're one of the afflicted, don't fret. Apple is working on the various bugs and iTunes 7.0.1 should be available soon. This time I will probably heed my own advice and wait 72 hours before installing it.
Apple.com > Support > Discussions > iTunes
Apple.com > Support > Discussions > iPod