The iTunes software squints missed a beat. Some of you will say that this is not a shock but, really, this is the kind of nit that they usually cover pretty well.
Usually in iTunes you can choose if you want the program to open automatically when you plug in your iPod. The option is set on a per-iPod basis: open with one 'Pod but don't with another. In iTunes 7.7 the option is still there but, for some reason in this version, if you have checked the global option to "Disable automatic syncing" then the per-'Pod option to control automatic iTunes launch gets grayed-out and not accessible -- no matter which way it is set or which way you want to switch it.
Work around: go to the global option to "Disable automatic syncing" and uncheck it. Then go back to the iPod page and set the "Open iTunes when this iPod is connected" option as you like it, then ... go back and reset the "Disable automatic syncing" again.
Not Apple Easy.