What are the best Cydia apps for the iPod touch that are free?

Can i update my jailbroken Ipod touch to 3.1 or the newest update without it deleting my Cydia apps? please!!!?

I want to keep it jailbroken but i would give it up if i cant update it to the newest thing on itunes. The reason i want to do this is because the newer apps that come out need the newer update and i tried it before and i got the update but it deleted everything on my ipod that had things from it being jailbroken and when i jailbroke it again it deleted the 3.0 update or whatever. i also have looked at tysiphone help but im still not sure.PLEASSSEEEE HELPPP MEEE!!!!
Answer:

unfortunately, if you download a new update, it restores your ipod, i had to go through the exact same thing, it sucks especially because it takes forever to use cydia, but its worth it trust me, it is worth all of the apps.

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