I stuck with v6 of iTunes until around a week or so ago. I waited until Apple put out a few updates because of all the problem reports people were posting on iPod forums such as iLounge.com and even on my little blog here.
I have XP and SP2 and had no problems at all – none. I was surprised about that. I don’t have a fancy PC, I have an Intel P4 2.8, 1 gig ram and on board graphics and all works great – including CoverFlow.
Version 7, in my opinion, is a big leap forward compared with v4.9 v5 and v6 (which were pretty much all the same).
I can sort through albums easily, podcast function seems better… lots of small things..
I don’t have videos but I like Cover art to be shown – v7 has a few ways of showing albums neatly – one is coverflow, the other is Grouped with Art.
It is worth updating now.