Kinda sounds like what I was experiencing For me after updating my touch to 2.0 when I went to MM to sync up it looked like it was working like it always does, copying songs, converting songs, etc. Once it was done I went to my music and NO SONGS. synced 1 song with iTunes went back to try to sync 1...

yea, same here. Just bought MM used for a day (which was GREAT) and then updated my touch to 2.0