Apple just release iTunes 1.0.7 (I installed it and my version is 220.127.116.11). You can download it from here. According to Apple, "iTunes 7.0.1 addresses stability and performance issues with Cover Flow, CD importing, iPod syncing, and more."
Unfortunately, this release did NOT remedy cover flow problems on my XP System. If the video driver is not configured properly, you will still get the cryptic "iTunes 7 Error - iTunes Unable to Browse Album Covers On This Computer."
If you are receiving this error, check out this article in my blog for possible fixes.