I've got iTunes 11.0.5 but can't upgrade to iOS 7

So, I've just upgraded to iTunes 11.0.5 on MBP.  I now want to update my iPod and iPad to iOS 7.  When connecting my iPod I get a message that I need iTunes 11.0.5, I check again and see I have 11.0.5 installed (I have Radio Channels).  I'm stuck.  I've restarted my MBP.  No luck.  Any ideas?

The error specifically says 7 requires 11.0.5, and asks if we want to download it. I say yes, and Software Update says I'm up to date...
Clearly there's somethig missing. If iTunes 11.1 is required, then the error message is wrong, AND software updater is wrong. Else, iTunes does not properly recongize it's already at 11.0.5.
I've checked this several times. This is exactly what it says, and won't allow me to update.
*Edit: Even http://www.apple.com/itunes/download/ says the latest version is 11.0.5. If 11.1 is required, where is it?

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