Well, I wouldn't upgrade to 7.6.1 just to fix that, if I were you, John.
I finally got around to upgrading to Leopard and the latest iTunes along with it and 7.6.1 refused to see my iTunes Library - no matter what I did. This has happened to lots of people at the Apple forums and the only solution is to downgrade to 7.5. Which I did - easily, since I'd just used Migration Assistant to install everything off the old drive onto the new drive, leaving the Tiger install etc. completely intact in case of disaster.
I hope Apple fixes whatever it is that is broken with 7.6.1 (and some had this problem with 7.6 - which I didn't try, on the principal of "if it ain't broke...") in the next version. But I won't be rushing to be on the bleeding edge with that either!