I have successfully upgraded to 1.1.3 using the guide that mmi provided, the dock bar looks as weird on my touch now as it does on the iphone.

But...

1. Why can't I move icons around?
2. Why can't I add icons to the home screen (from Safari)?
3. Why can't I view lyrics?
4. Do I need to buy the 'January Update'?

If so...
5. Will buying the 'January Update' apps after jailbreaking 'unjailbreak' my ipod touch?

Answering these questions would help clear up a lot of confusion. Thanks.