Do not let your computer update your iPod! You will lose all those songs that are no longer on your hard drive. Trust me, I've done it before.
I don't know if/how you can transfer songs from your iPod to your computer, but if you want to add new songs to your iPod from now on, you're going to have to do it manually, unless you want to lose all those other songs that aren't on your hard drive.
I am not on my computer with iTunes right now, so I can't remember how to do it, but if you go on the apple site, it will tell you how to.
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