iTunes 10.7 update PROBLEMS OS 10.6.8

I use(d) my iPhone 4 as a USB Tethered Modem on a Macbook laptop.

ALL software is up to date

Problems:

1. The exact second iTunes 10.7 update completed it's install, my iPhone4 STOPPED being a USB Tethered Hotspot!
2. iPhoto STOPPED SEEING new pictures on the iPhone4.

iTunes still sees the iPhone but Network does not see the iPhone when it is Tethered via USB & the iPhone option is GONE

I can turn on Bluetooth and use it as a modem but it does not work USB Tethered. This is NOT a viable Option!

Trouble shooting:

I have an Powerbook G4 OS 10.5.8 that has NOT been updated in a year and the iPhone works as a USB Tethered Modem & iPhoto sees the pics on the iPhone, so it is NOT a cable or an iPhone problem.

Apple Support REFUSED to help me saying they have no record of problems (but I found with Google, a lot of problems reported on Windows devices).

THEY ALSO SAID THEY DO NOT OFFER EXCEPTIONS AFTER THE 3RD ONE, EVEN IF IT IS THEIR FAULT DUE TO A SOFTWARE UPDATE!?!?

I took both laptops and the iPhone4 to an Apple store Genius Bar and all they could come up with was to reinstall the OS, which they did without deleting my applications because I do not have the serial numbers to several very expensive apps that I got with the system when I bought it used.

2+ HOURS LATER...

1. Network had no iPhone option at all.
2. iPhoto still did not see pics on the iPhone4
3. iTunes still saw the iPhone4
4. Bluetooth is my Only Option to get to the WWW but it's SO SLOW I'm now using the Powerbook!
   

😟It sure seems that since Steve is gone,Apple has been infected with IBM-itis😮

😠 FIX THIS UPDATE A.S.A.P. PLEASE! 😠