Apple recently released iTunes 7.7.0, bringing along its share of new features and bug fixes. The major update actually comes for owners of iPhones and iPod Touches, because Apple updated the firmware of both to v2.0. Version 2‘s highlighted feature is the App Store, which has 500+ applications for your pleasure. Other features are support for Microsoft Exchange ActiveSync, which keeps your contacts, calendars, etc up-to-date, GPS tracking, contact searching, Powerpoint and iView viewing support, direct screenshot capturing, MobileMe support, among other things. Sadly, current owners (i.e. not 3G owners) have to buy the firmware update for $20. It is worth noting that everything on your device will be erased after applying the update, so make a backup before you update.

If you have any problems applying the after applying the firmware update, check out this article at MyDigitalLife that talks about how to fix firmware errors.