so I have read that I can only update my iPod if its using Mac's format

(1) How do I format it(using a Mac)? just go to disk utilities and click "erase"???

If I format it in Mac's format, this means I cannot use it as a Hard Drive on Windows, (2)right???

(3)Will it (Mac formatted iPod) still sync to iTunes on a PC (Windows)???

(4)How do I format an iPod using a PC, do I go to My Computer then right click the iPod and hit "format"???

just incase the Nano, Video and Touch has different procedures to format, please state it here clearly.

(5)What are the benefits of upgrading my iPod?

Sorry if this has been posted already.

Thanks in advance.

You should use iTunes in the Mac to restore the iPod to its clean state. This will at the same time reformat the iPod to HFS+ (instead of FAT32). A Mac-formatted iPod will not be readable or writable by a Windows PC (and thus will not sync with PC iTunes) without installing third party software on the PC (i.e., MacDrive).

Formatting an HFS+ iPod to FAT32 requires that you use iTunes on the PC - do a Restore.

I think that the iPod Touch is platform agnostic - since it's already an OS X device, and it can't be used as a hard drive.

ok, so if I click the "restore" button on iTunes using my Mac, it will automatically format my iPod to HFS and will not be read/sync with iTunes that is installed to a PC, (is my understanding correct?)

Yes. A Mac-formatted iPod cannot be recognized by iTunes in Windows. On the other hand, a Windows formatted iPod will be recognized by iTunes on a Mac and will sync properly with a Mac. About the only thing that cannot be done under this scenario is to update the Windows iPod's firmware with OS X and still expect the iPod to be Windows-formatted.

The Scenario:
ipod touch windows formatted. Planning to format with mac. But wants to copy the existing songs first to mac itunes library before formatting and erasing all the existing songs on the itouch.
Problem: as I open senuti to copy the existing songs, this appears:
The application Senuti quit unexpectedly.
Mac OS X and other applications are not affected.

Click Reopen to open the application again. Click Report to see more details or send a report to Apple.

Please help. Thanks

@harmieus: Try trashing senuti, emptying trash and then reinstalling it. See if the problem persists after that.

@harmieus: Try trashing senuti, emptying trash and then reinstalling it. See if the problem persists after that.
Achieved!
Thanks!