I have just updated to 4.2, and the space for my music is still taken according to iTunes, and the device "About" screen says I have 723 songs, but I cannot see it in the iPod app. I assume that another sync is required to activate the content again or something to that effect?
EDIT:
iTunes can see the content on my phone and even allow me to play it. I will attach some images to illustrate the issue. My photo library was updated and seems to work. I have also tried closing all apps, which did not help.

