If you do it on itunes on your computer it will be intact but if you do it on your ipod touch/iphone you will have to start over.
Phew good thing I hit cancel when I tried it from my Touch iTunes shows the latest version as 1.30, I downloaded it but I still only have 1.20..maybe I have to wait till tomorrow.
L2s, you should seriously consider buying HC, its worth every dollar. You may hate it at first..I [and many others] did, but it grows on you..trust me.
It's pretty good, but I'm not sure if it's as good as spooning. I was for awhile. I think it just takes awhile to propagate?