I bought the iPod touch when it first came out, and then bought the $ 20 software upgrade in January if I restore my iPod touch now will the software upgrade be there or do I have to spend another $20?
if its a software update purchased through your itunes account (since i havent purchased software updates through itunes...yet!) i think it will remain in your download section of your itunes on your computer; similar to if you were purchasing movies or music id presume...