Sorry
Dicky (
http://lifeofstaff.blogspot.com/2008/01/legitimate-apps-on-my-ipod-touch.html) but I think my
iPod Touch January Update experience was far more seemless, pain-free and cheaper than yours. Ready to move to NZ yet? ;-)
I simply performed the software update (when prompted in iTunes), followed the upgrade link (after the reboot) paid my NZ$27.99 (GBP10.87) and wahey - all up and running. I must admit I haven't checked the 'manually manage' button - I just sync based on a Playlist and checked Photos/Videos.
I'm very happy with the new software though. Google Maps is very cool. The email client is great - stoked that the gmail IMAP/SSL functionality is already in there. Its nice when a new mail comes in that the music volume is reduced - a cool 'ping' noise plays - then the volume returns to normal. Still don't like the onscreen keyboard though - fat thumbs. Haven't used the stocks application (don't care about that). But the weather app is really nice.
I've already recommended the update to two other iPod touch users today :-)
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