Actually, there's a little more to it. I updated to 7.6.2 on my Mac Pro and now it no longer sees my iPhone. Actually, the OS doesn't see the iPhone either. What's weird is that I've got Hardware Growler installed and a minute or two after I plug in my iPhone, I get a Growl notification that says "USB Disconnection - iPhone". Nothing happens at all when I first plug it in however the battery is getting charged (but the iPhone doesn't show that it's being charged). My iPhone is Jailbroken and Unlocked so it's probably related to that so I'm not gonna fuss over it for now.
Here's the weird part. My partner just updated iTunes on his MacBook to 7.6.2 (the OS is fully updated 10.5.2) and now neither of his iPods are recognized. He's got a relatively new Shuffle and a 5G 30GB Video iPod. Nothing happens when he plugs them in, the OS doesn't seem to see them nor do they show up in iTunes. They were working just fine before he ran Software Update.
Any ideas?
Edit: Problem solved... but I can't explain why. As I said, everything was working fine on his MacBook, ran software update and suddenly it didn't see either iPod. I fiddled with the USB cables, restarted the MacBook a few times and then it magically saw the Shuffle (but not the other one). Fiddled some more with cables (unplugged and plugged in again) and suddenly it saw the other iPod. Then it said that the iPod needed to be updated to version 1.3 of the firmware. I clicked okay and then got an "unknown error 1433". Tried several times to no avail and then suddenly the update worked. So for now it's working...