To avoid any confusion, I just went to the apple store and presented my receipt and they gave me cnd50 credit; cnd30 for the price adjustment from cnd449 to cnd419 and cnd20 for the software upgrade. I believe this will only be available if you bought your ipod within 14 days of a price adjustment, so my guess is only 2nd January onwards would you be able to get some credit back.
Btw, I went back and purchased the software upgrade through iTunes and it works🙂