Upgrading ipodTouch to software version 2.1

I downloaded 2.1 from the iTunes store onto my Mac Book.
I connected my iPod Touch to my Mac Book to initiate the update on my iPodTouch.
There is a warning alert that advises me that if I proceed, "all the data on the iPod will be lost."
Since when did software updates to iPods erase the data therein?

I had the same issue as the other guy that wrote about the "all data being lost" when upgrading to 2.1, but I went ahead and upgraded anyway. As the application was running, I got multiple errors, saying, "The iPod could not be restored. An unknown error occurred," with two different versions of errors, (1601) and (9). Do you or anyone else know what this is about? After that occurred, my screen went blank, and I have not been able to do anything about it!

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(73016)

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✓Save To My Bug Watch
Description
Symptom:When doing a minor upgrade to CUCM 8.6 the demo license still works, however the feature demo-license does not work anymore. It shows as "Missing".
Conditions:Minor upgrade to CUCM 8.6
Workaround:
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Details
First Found in:
More
Less
Status:
Open
Last Modified:
Apr 02,2012
Known Affected Versions:
More
Less
Fixed in:
More
Less
Product:
Cisco Unified Communications Manager (CallManager)
Platform:
Dependent
Severity:
4 - minor
Cheers!
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"Everything is broken" - Bob Dylan

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Upgrading ipodTouch to software version 2.1

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