Software update hangs after upgrading to Lion

Just recently upgraded to Lion, mostly without any glitches but upon starting up iTunes I was presented with a dialog box indicating that the version of iTunes was "too new" (I think) and suggested I used Software Update to install a Lion compatible one. So I did. Went to Software Update and clicked on "Check Now" and waited. Task bar moved from left to right to indicate activity and progress but then it stopped at about 4/5 of the way to completion. And that's where it stayed! Canceled and tried again but same outcome. Rebooted and tried again, same outcome. Downloaded and installed the Lion friendly version of iTunes which installed ok, tried Software Update. Same outcome. Anybody out there have the same problem? A solution? Would be great to here from anyone who can help.

Me too. I'm running a mid-2010 Mac Mini with 8GB RAM.
The first couple of times when I tried using the Software Update app, I coudn't get the download to begin; after I clicked the Agree button, the dialog box closed, but the download never started. The Software Update app was still running, just not doing anything. I'd close the app and tray again with the same results.
Today I tried and the download did download and started to install. When it reach the 'Registering components' stage near the end, it appeared to hang at around 98% complete.
Because I was doing onther stuff on my computer, I let it sit there for about 40 minutes. Then, all of a sudden, it finished the install. I've opened iTunes and the 'About' box tells me I'm running iTunes 10 .4 (80) 64-bit.
So, try again and be patient.

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