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No, it doesn't.
I think you have to have it to install 3.1.1, but I've downgraded to 8.2.1 with no problem (except I chose the wrong archived iTunes library file, but didn't lose any purchased stuff.

actually.... I did lose fuzzle. No biggie!
 
I upgraded to 3.1.1 successfully using iTunes 8.2 (not even 8.2.1). You don't need iTunes 9 at all.
 
Oh ok thank you both for your replies. I want 3.1.1 but I don't want to upgrade to iTunes 9 until I absolutely have to (like getting a new device)
 
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