So I had to do one more step. The adt devices command worked with Air 17 Beta but when I went to install my ipa (built with Air 16 release) I got this package error:
D:\projects\flash\TwistedTweetsLoader\dist\paid\itunes_dev
>adt -installApp -platform ios -package TwistedTweets.ipa
Installation Error: PackageInspectionFailed.
So... I had to rebuild my ipa with 17 and then it worked. It installed and ran fine. No need to do anything with my latest iTunes install on my Windows 7 box. The error "iTunes MobileDevice library not found.Please check your iTunes installation." went away.
