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
No it will restore the apps automactically
Be rude and mean to them
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
I'm not sure...I can't remember
no it does not but if it happens to yours get it checked
If you jailbreak correctly, no, you keep all your songs on your ipod after jailbreaking.
about a month