Trying to play some of those snazzy new games (I can't wait for Texas Holdem'!), but your brand new iTunes 7 says your iPod isn't up to date, but Update is grayed out under the new "Summary" screen? Just hit Restore once (don't worry, you have to authorize it before anything is wiped clean) and then hit Cancel in the next dialog.
iTunes should then realize there is an update available for your update. Happy gaming and movie watching!
[robg adds: My 3G iPod stubbornly refuses to display either color or video, so I can't really test this one. Must be about time for a hardware upgrade!]
Mac OS X Hints
http://hints.macworld.com/article.php?story=20060912144151766