The iPod Updater program is now integrated in iTunes 7. As with each previous version iTunes, you must update your iPod for it to fully work with the new software.
Beware. Those of you who have second generation iPod mini’s that came without the external AC adapter (or if you have a broken AC adapter) will need to plug your iPod mini into external power for the iPod Updater to fully work. Until that point, regardless of how many times you plug the iPod mini into your computer, the updater will not finish and you’ll be stuck with a non-functioning iPod.
Here are my suggestions before updating. First, make sure you have a copy of the older iPod Updaters and a copy of iTunes 6 hidden away on a hard drive. If you can’t use or don’t like the newest version of iTunes, at least you’ll have a fall back that won’t require a total system reinstall from the OEM CDs or DVDs.
As with any iTunes update, make sure you have your music backed up. While I have not seen, heard, or read any issue with lost libraries, it has happened in the past. Take time to back up before installing new applications, to avoid being that poor soul who loses everything when the update goes awry.