A reset:
Reset iPod touch: Press and hold the On/Off Sleep/Wake button and the Home
button at the same time for at least ten seconds, until the Apple logo appears
will result in loosing nothing.
- The second time I said reset I mad an error and meant restore (from backup and factory default/new iPod).
- A restore from backup will result in the iPod being like it was when the backup was made provided that all the apps and music that are on the iPod are also in your itunes library so these can be synced backed at the end of the restore.
- A restore to factory defaults/new iPod make it like a new iPod. You have to reload everything on your iPod.
Sorry for my confusion/ error.