freak out
If it is the latest ipod touch, then you can set up a tracker if you lose it, but I am unsure how.
You will lose every thing that is on it
no at least not when you are updating the ipod touch to the 2.2
no
Be rude and mean to them
No it will restore the apps automactically
Wait or press and hold the home and power buttons at the same time until your iPod restarts. You won't lose anything so don't worry
no it does not but if it happens to yours get it checked
I'm not sure...I can't remember
If you jailbreak correctly, no, you keep all your songs on your ipod after jailbreaking.
about a month