Apple Upgrading iPod Touch 4G To 5.0.1

Livin in a box

Livin' in a cardboard box
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I've been out of the iOS scene for a few months now (not that I was ever really in it anyway) but now the time has come where I would like up update my iPod Touch 4G that's currently on 4.2.1 - jailbroken - to the latest iOS firmware and jailbreak it. From what I can see, Sn0wbreeze 2.9 appears to be the latest jailbreaking tool for A4 devices, but I don't know what route I need to take to get there. Of course I have a lot of arrr'd apps on my iPod which I have backed up with AppBackup and also my Cydia installed list with AptBackup, so from my limited understanding of this process I will just need to install those back onto my iPod when I have updated and jailbroken my iPod for all my app save data that I desperately want to keep?

Also, I would like to know if I need to do anything with it in iTunes before I send it on its merry way to iOS 5 - if there's anything I should backup or what. A lot of my apps are out of date now anyway so it'd be mostly pointless just backing those ipa's up if I just need to download new ones anyway. Thanks!
 

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