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Sorry, the ROM update is the equivalent of reinstalling Windows on your home computer. You should back up anything you want to keep stored on your PPC. Anything on your storage card is safe.
It's easy to reinstall all the programs you have- just go to Tools-Add/Remove Programs from Activesync after the hard reset and you can recheck anything you want reinstalled to your PPC. The only drawback is having to take time to reset all system settings and reregister all apps after setting the same owner name as you previously had. Many PPC apps base the reg keys off of the owner name of the device. Good luck, and don't feel shy to ask questions...
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