Well, iTunes 7 winds up being TOO smart. It tells me that it's a Mac-formatted drive and I have to wipe it with a Windows format before I can use it.
The whole point of Xplay is to mount the Mac-formatted iPod on your Windows system. I can see it as a drive (I

, but iTunes no longer reads from it. Now that iTunes checks the format, either I format it for Windows (probably harmless), or I get an Xplay upgrade (if/when it ever comes out).