AFTER OS3 UPGRADE, 2GEN IPOD TOUCH HAS NO AUDIO and APPS WON'T OPEN

I installed iTunes 8.2 last week. Today I upgraded my 2gen iPod Touch to OS3 and there is no audio for songs purchased through iTunes. Songs that I have ripped from CDs have audio. Podcasts have audio. Songs I purchased from iTunes are not yet DRM free (I haven't paid yet to do so), so is this something about DRM or a OS3 problem?
Also, apps (from the store) icons appear on the iPod, but will not open when tapped.
I have done reset and restore. Any thoughts would be appreciated. Hope I won't have to wait for Apple to fix this. Thanks for your help.

I actually just had a call with an apple IT person - he had me go to "settings" on my touch, and reset, then "reset all settings".
my volume bar came back and it is now working with all my speakers, in the car, headphones, etc.
hope this helps.

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