Yeah I have noticed this too, it is REALLY irritating as I used ourTunes to copy music bought on my music store account from my siblings. Supposudly you can use the new "Transfer Purchased Music From iPod" feature, but knowing Apple it wont figure out what you already have and not import that.
I have tried contacting the ourTunes guys, but the email doesn't work, but I have found another program similar to ourTunes called Blue Coconut that I tried and also failed with iTunes 7. I was, however, able to send them an email regarding the iTunes 7 incompatability.
Lets just hope one of these two are fixed soon, or a new one comes out. P.s. has anyone gotten myTunes to work on PC with iTunes 7? I have the same problem as I do with ourTunes, even though the website claims it works.
Also, if anyone tries the iPod thing and it works well, and decides what to import and what not to depending on what you have, please let us know.