I don't know that it's necessarily phoning home for an
update, but there could be something going on in regards to its communication to the outside world, rather than iTunes itself.
In my case, doing a factory reset did
not resolve the problem, nor did shutting down iTunes on all of my computers, or even the computers themselves.
After the factory reset, it was attempting to reconnect to an iTunes library, and displaying the five-digit code... However, it kept flipping back to the Apple logo and then coming back to a
different five-digit code.
Disconnecting my actual physical
Internet connection seemed to resolve the problem, and it was okay until I reconnected it back to the Internet.
It may not be iTunes 7.2 so much as it may be related to the work they're doing on the iTunes
Store today with regards to all of the iTunes Plus content being added.
In short, I can sync and view content just fine from my iTunes 7.2 libraries, as long as my Internet connection is offline. As soon as I reconnect to the Internet, the problem begins again.