"Next, onto not being able to move items from Music to Audiobooks. I mentioned that I had tried iTunify and that it had not worked. Well it had sort of worked. What the program did not tell you what that you have to remove the items from your library (being sure to click 'keep files' when asked) and then re-add them. When you re-add them they will go into the right place."

First: The bug with newly created audiobooks not being listed as such in iTunes 7 is actually a bug in iTunes 7+, not iTunify! In iTunes 6 newly created audiobooks were listed properly!

Second: The current version of iTunify was released one day before the release of iTunes 7. So the bug did not exist at that time of the release of the current iTunify. So please tell me: how shall iTunify tell you to re-add the tracks if the bug was not even known and iTunes 7 not yet released? Shall it predict?

iTunify works as it should. iTunes 7 is to blame.
iTunify converts your music to audiobooks as it should - iTunes 7 just doesn't notice it unless you re-add the audiobooks to the library.

BTW: An updated version of iTunify for iTunes 7 is on the way.

Cheers,
the makers of iTunify