How do I upgrade my iPod touch to IOS 5.0.1 without losing my app data?

I want to upgrade my iPod touch (4.3.3) to IOS 5.0.1, but I don't want to lose my app data (Tiny Tower, etc.)
I transferred all my purchases to the host computer. I also backed up my app data. Before I update the IOS software on my iPod touch, I'd like to find out if the app data on my iPod will be erased as part of the upgrade.
If so, will a restore from backup restore the app data?

See Here   Updating to iOS 5   http://support.apple.com/kb/HT4972
And here   Backup and Set Up as New Device   http://support.apple.com/kb/HT4137

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