IPhone USB/BT/Wifi Unable to Connect after iTunes 10.7 Update

If anyone can help, it would be greatly appreciated!
Background: 
I received and installed the iTunes 10.7 (21) last night.  This morning, my MBP would not connect to my I phone via Wifi/USB/BT. I did some digging and apparently this is an issue with this iTunes update.  I have subsequently removed iT 10.7 and reinstalled iT 10.6.3 and successfully retrieved the archive library.  That all seems to be working well. 
By way of trouble shooting the iPhone 4, I've been able to establish link to the Wifi and USB with my work Windows laptop, and wifi with my iPad 3 MacBook, so I'm reasonably certain that it is working correctly.
Hardware:
MacBook Pro:13/i5; OS 10.6.8 with all updates.
iPhone 4: iOS 5.1.1
I really don't want to update OS/iOS at this time for a number of reasons... like I really use the maps and would like to wait until that issue is fixed for iOS6.
So, what have I missed?  What tweak did the 10.7 update do that I can undo?
I'm sickeningly dependent upon my iPhone/hotspot and this is most distressing!
Anyone know how to correct this?
Best regards,
John

A bit more...
iPhone4 connects with the cable, I can sync, update, etc... just no wifi/BT/USB data...

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