http://i35.tinypic.com/2mfgojc.png
Anyone have similar problems?
Hmm I've never seen that before. I would just look at your iPhone and deal with updates through there. Seems like iTunes is having a problem with the new update. Did you download 7.7 before hand? I heard that iTunes 7.7 was needed before the 2.0.1 could be installed and work properly.
I've had 7.7.1 since release.
And I've heard of real bad issues when updating or installing right from the device so I've been trying to keep it within iTunes.