So it appears that the synching of the iphone takes a long time with itunes 7.7 and iphone 2.0. I think this is probrably due to the apps installed on the iphone.
I am guessing it takes a backup of each app and its settings per synch. I can understand backing up the settings, but the app itself is already in itunes. Ahh well, I am sure we will see improvements with the apps as we go along.