Aloha peterhenley,
I got that today, on the first sync with my "new" 8GB "iPhonePod touch". I decided to keep my 1st gen iPhone, so it is now, effectively, an iPod touch. My wife wants to use it to watch movies and listen to music. She really wanted to use it as a cell phone without the data, but that's not going to happen with AT&T, but she really loves the User Interface.
That being said, I noticed the same thing today. iTunes indicated that it had completed the sync with my 1st gen iPhone, but the spinning arrows continued for another 30 seconds or so. I'll watch after I complete my initial sync with my iPhone 3G to see if this continues.
HawaiiMacAddict