Ipod troubles

Loaded an updated version of Itunes the other day. Didn't reset to manually manage the files on my ipod and my entire ipod got erased. It's no so bad considering I am a music hoarder and the stuff I am currently listening to is on my computer anyway, but it's still pretty tough to stomach considering all the stuff I had on there. I hate how Itunes creates an extra copy of the music on your computer every time you load into your music library, thus your music takes double the space. Whenever I try and manage my ipod with a different program, my album artwork no longer displays. I've actually just put my ipod down for a bit. I'm just depressed that my cool playlists have to be made all over again.