Cannot update or eject Ipod using Itunes 7.

Hey all.
I can see that Itunes 7 is giving people quite a bit of grief. I have installed it and when i try and update my 60GB Ipod with version 1.2 (my current version is 1.1) it comes up with the message "Ipod cannot be updated because it contains files that are in use by another application". It will not let me eject my Ipod through itunes for the same reason, i have to eject it using Windows.
I have tried with three different Ipods and it is the same for all of them. I have also tried resetting my Ipod manually with no luck. Any help is greatly appreciated.
Thanks.

I am posting a possible solution to all these problems I and so many of you have said you've experienced. I think I had two things working against me:
1) I did not have a 2.0 USB port when trying to update my ipod to version 1.2. I think this effected the connection and iTunes ability to recognize my iPod.
Anyway, I put in a new USB 2.0 card in my computer, giving me new ports off the mother board, and my connection and update worked.
2) I was not giving it enough time. After I installed the USB card and everything I tried to update my iPod a couple of times, but still had a long slow stall that I did not wait through. I kept at it though and a few days later I set it up to update and left to go out to dinner. Hours late I came back and found things different. I used windows to disconnect my iPod and then noticed a dark "working" bar on my iPod. It was finally updating the device. I waited a while unitl it was finished and then diconnected and ever since then I've got version 1.2 on the iPod and things are working better.
So, my advice: check your USB ports and then give it a few hours.
I really hope this works for you. I worked on this problem for two months and I'm so glad it finally came through. I wish Apple would post some more resolutions that are better than mine.
Good luck,
Galahad

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Sony Corporation VPCEA36FM
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QuickTime 7.6.9
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CD Driver 2.2.0.1
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Gracenote SDK 1.9.5.502
Gracenote MusicID 1.9.5.115
Gracenote Submit 1.9.5.143
Gracenote DSP 1.9.5.45
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Video Display Information
Intel Corporation, Intel(R) HD Graphics
**** External Plug-ins Information ****
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iTunesHelper 10.6.0.40 is currently running.
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**** Network Connectivity Tests ****
Network Adapter Information
Adapter Name: {8006FDD2-8D65-48AF-A250-84E3DB015244}
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IP Address: 0.0.0.0
Subnet Mask: 0.0.0.0
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DHCP Enabled: Yes
DHCP Server:
Lease Obtained: Thu Jan 01 07:00:00 1970
Lease Expires: Thu Jan 01 07:00:00 1970
DNS Servers:
Adapter Name: {E636920D-26A9-4F04-ABCA-6BB1FD5FDD4B}
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Subnet Mask: 0.0.0.0
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DHCP Enabled: Yes
DHCP Server:
Lease Obtained: Thu Jan 01 07:00:00 1970
Lease Expires: Thu Jan 01 07:00:00 1970
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Adapter Name: {0BF69262-728F-47F1-A852-D2F6F37BD356}
Description: Intel(R) Centrino(R) Advanced-N 6250 AGN
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Subnet Mask: 255.255.255.0
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DHCP Server: 192.168.1.1
Lease Obtained: Sun Mar 25 11:02:13 2012
Lease Expires: Sun Mar 25 13:02:13 2012
DNS Servers: 203.130.196.155
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(iTunes) iOS based apps (for iPhones, iPads, and the iPod touch) can be updated directly from the device.
Tap the App Store icon then tap Updates at the bottom of the display.
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Quit the App Store if it's open.
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Type or copy/paste:    ~/LIbrary/Caches/com.apple.appstore
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Type or copy/paste:    ~/Library/Cookies
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