I'm sure you know what restore does. It resets to factory settings & erases all songs on the pod.
For manual updating, see the iPod tutorial.
http://www.apple.com/support/ipod/tutorial/index.html (If you have QT Pro you can downld the video file to your HDD.) This link is in the previous link I left. I think I left further reference to it & a sample image at bottom of 1st page of that link above (sample image is on page 2.)