I was really surpised myself that installing iTunes 8.0 over 7.7 (not 7.7.1), which was working fine, brought back the crashes. I has assumed until then that there was an iTunes-specific bug in how DRM was being handled. It was that assumption that enticed me to install 8.0 right away, instead of waiting to do it along with the firmware update. I thought I had it all figured out - not so!
I was under the same assumption. I figured it would be the fix we were waiting for, not 2.1.