all versions sound the same???

I just got an iphone and I plugged it into my mac mini and it told me that I have to download the latest version for it to sync. I have been using itunes 7.4.2 for some time now and have zero complaints. I have a huge itunes library and so far no problems, hence my reasoning behind not updating. The features of the newer versions have not been enough to sway me to update.

I read somewhere that the newer versions of itunes don't sound as good.

Is there any truth to this and is there anything to fear in updating my itunes to the newest version 8?

I'd like to sync up my iphone but I don't want to lose a bit of sound quality in the process. I'd rather not link it up to my itunes libraray if that is the case.
I've been doing some serious listening over the last couple days and comparing. So far iTunes 8 might sound a little better.

My AirPort Express 802.11n (AirTunes) seems to also sound better.

I'm using two MacBooks with:
Bel Canto DAC3
HagUSB & 47 Labs Shigaraki DAC
Linn 5103

I would be very interested in what others think.

I regards to upgrading, I would do it. The iPhone is an excellent device.
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Yes, iTunes 8 does actually sound better. In a nutshell, it is slightly more "relaxed" sounding. In my book, this is a very good thing as it brings digital just a little closer to analog comparably.
I too like iTunes 8 and love my iPhone.

Currently my iTunes music is loaded only on the iPod, none on my new iPhone.

Has anyone compared the sound of CD's burned to Apple Lossless and loaded onto the new 3G iPhone against last years iPod video?

So you know where I'm coming from, I have Ultimate Ears Super Fi 5 pro ear buds which sound OK with the iPod video but amazingly better plugged into my quad core Macintosh tower.

Maybe this is due to an impedance thing or maybe the iPod was never that great with it's little on board chip amp.
After more listening I can clearly say that iTunes 8 sounds better. I have been doing a direct comparison with two MacBooks (one with iTunes 8 and the other with the previous version) and iTunes 8 is clearly better. Its not subtle on some material, especially Apple Lossless files of good recordings.

There also seems to be a equal improvement when streaming through the AirPort Express (AirTunes).

The more I use and listen to iTunes, the more I like it. I also own a Linn DS, and while the sound quality is very good, my Mac playing through the Bel Canto DAC is very, very close. The simplicity and flexibility of iTunes makes the Linn DS seem like complete junk. I've even been thinking about selling the DS. I really, really like iTunes. The iPhone/iPod Touch Remote App is brilliant!!!!
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Yes, I agree with all that 8 does sound better and there is not many things cooler than controlling the system with the iphone.

I am also starting to think the iphone ipod may sound better than my ipod video???? It definately has a sharper sound with more detail.