Will Apple cover me if updating to iOS5 on ipod Touch 3rd gen ruins/bricks it?

I have heard stories of some people's apple products not working/bricked after attempting to upgrade to iOS5.
I have a 1.5 year old ipod Touch 3rd gen. No warranty on it from Apple (tho I do have one from Square Trade for ADH, but I called them and they said if it is a software issue, they don't cover it.)
I am very concerned about d/ling the ios5 upgrade and it ruining my ipod touch.  In effect, I will take a device that could fetch almost $200 on ebay (which I could then use to upgrade to a Touch 5gen), and turn it into a worthless piece of junk if I upgrade and it ruins it.
Also, I know that they have released 5.0.1 (beta I believe?) for update.   I still read stories on here from people waiting until now (Nov, a month after it was first released when so many people tried to d/l it and had terrible problems), but now are still getting network timed out error msgs, etc.
So is there ANY protection from Apple if their update should screw my ipod touch??
Should I just wait longer for a final, stable version  of ios 5? (like v5.1)  Or just totally skip the iOS 5 upgrade and stay safe with iOS 4?  I don't know that it is really worth the $200 loss risk to upgrade to iOS5.  (i.e. 3rd gen doesn't have the ability to find and lock/wipe my lost touch, etc.)
I do know that I should:
1) install itunes 10.5 anew on my laptop  (itunes and syncing WAS done on my tower, until I just got it back from being serviced for some Major problems/virues/malware/etc.  I'm not comfortable using it, as the problems on it included not being able to start Local Services, connect to the internet, no audio services, etc.  The guy says it is booting up and services are working now, but you never know....But i digress...)
2) be on AC and not battery on my laptop
3) be hardwired (ethernet) to the internet and not use my wireless connection
4) turn off Windows 7 Firewall, and disable my PC Tools Spyware Docter with Antivirus.
So, what do you all think? should I wait until later to upgrade to say os 5.1?  Should I even RISK upgrading to iOS5 on a touch 3gen and lose almost $200 cash?  And will Apple give me ANY protection should it ruin my touch?  (I seriously doubt it.)
Thanks for input.
Dave
Kentucky

Before proceeding with the update, it wouldn't hurt to manually back up the iPod in iTunes by right->clicking on it from under the Devices section and choosing Backup.    See this article for more information on what is stored in the backup.
http://support.apple.com/kb/HT4946
Also make sure that any content you may have synced to the device from iTunes, such as Music, movies, TV Shows, podcasts, etc. are all stored on your computer and in iTunes before updating the iPod's version of iOS.
Otherwise, I would go ahead with the upgrade.  I didn't have any issues with it on my iPhone.
B-rock

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