Q: itunes 10.6 freezes when syncing to 5th gen nano. Any solutions?

I have just downloaded, and updated iTunes to 10.6. 

Now I only get a beach ball in iTunes (which can only be force quit) when doing any kind of sync with the with 5th Gen Nano.  I can no longer delete or add songs or movies.  The Nano still works perfectly.

Is the 5th Gen Nano no longer supported by Apple?

Thanks for any input or help.