My original-model iPhone, with the 2.0 software, locks up at least once each day. It never used to. And, the synching takes forever, and when you delete something from the iPhone it mysteriously reappears when you sync, AND when you get a notification on the iPhone that there are software updates, iTunes won’t know anything about it.
This is a GREAT time to be sitting on the sidelines watching it all play out. I am sure that in a few weeks all will be well, but I can tell you that it ain’t well now. Listen to the Voice of Experience.