K, I did solve this (for the time being). Heres what happened.
Prior to the update I removed all the music from my iphone. After the update, when even i tried to open the music settings tab for iphone at the top of the page, itunes would freeze and I would have to terminate the program and restart.
After some thought I plugged in the phone again, opened itunes and after phone connected to itunes I selected the music list tab in the LEFT side column. I dragged and dropped music to the iphones music list. When i was done, I was able to select the music setting tab at the top of the page without itunes freezing.
Let me know if it works for you.