Everytime i connect my ipad on my itunes..

Hi to all,
I have some questions about updating my ipad.
1st time i connect my ipad to my PC whit itunes on, he asked me for an update, i said yes, and he did the update and for some reason lost all my apps.
2nd time i connect (few months later) i connect my ipad to my PC whit itunes, he asked again and this time didnt erased any app's, but i lost all my information from an app that calls something like "ebudget" is this normal? how do i protect my info? i can't connect it to my itunes?
p.S i Belive my o.s is now the latest so 5.1.1.

If you perform the procedure properly, you should not lose anything at all. I stress the words "should not" ... because unfortunately, things do go wrong sometimes.
You can try restoring from a backup in order to retrieve that app data, if you have a backup that does contain the data.
This is what I recommend anytime you want to update an iDevice.
What you should do anytime that you update the device is to transfer purchases from the iPad into iTunes - File>Transfer Purchases - and you should backup the iPad as well. When you update the update the device, if something goes wrong, you can restore from the backup.
However, iTunes should ask if you want to backup before you update, but just in case create the backup yourself before you update. The backup contains your app data and settings - along with other items - so make sure you backup first.
If you have any other important files, you may want to transfer them to your computer as well, prior to the update.
Transfer purchases.
http://support.apple.com/kb/HT1848
How to backup
http://support.apple.com/kb/HT1766
How to update your iPad
http://support.apple.com/kb/HT4623
This is what iTunes should do when you update the device. This talks about iOS 5, but it should work this way with any update.
As part of the update and restore process, iTunes will (in order):
Back up key elements of your device, such as settings, Contacts, Calendars, Notes, and your Camera Roll1. iTunes will not, however, back up media content from your iOS device, such as music, apps, books, movies, and TV shows.
Update your device to iOS 5.
Restore your device from your most recent backup.
Restart your device.
Sync back media content from your iTunes Library to your device
That was copied from this website.
http://support.apple.com/kb/HT4972

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