iPod Will I Lose My iPod Touch 2.0 Upgrade if Apple Replaces It Under My Warranty?

No, you won't lose it as it's purchased onto your iTunes account.

Sorry, didn't make myself clear. When you plug in your new iPod you will need to authorise it using your iTunes account details (in order to let it play music purchased on iTunes) and, by doing so, will update to 2.0.

If you were, say, to sell your old Touch, when the person who bought it syncs it with their iTunes, 2.0 would be deleted and it'd go back to the original firmware.

I had to replace my ipod touch and i had already bought the 2.0 update, and the people at the apple store said that i needed to email Itunes and they will fix it for me, but I tried to sync it when I got my new ipod and it wouldn't let me restore it because it didn't have the newest up-to-date software so I had to sync it as a new ipod and it doesn't have the 2.0 update on it now. So I just emailed iTunes support so hopefully i'll be able to hear back from them in the next 2 days.

nevermind it works

nevermind, it does work. you just need to click the update button when you plug in your ipod touch, i got scared and thought it was gonna charge me again for the update, but it didnt, it just installed it.