Use the Cydia Tweak called "No Dock Reflection," it should work.
Also, next time you wipe your iTouch when updating (which will probably be never, since Over the air updates are coming in iOS 5), make sure you use
App Backup, which creates a backup of Game Data. I'm not entirely sure how to fix the music bar problem (probably because I don't really understand the problem).
Oh, and the multitasking panel: I haven't been able to fix that either, and the same effect happens when I use folders. I'll edit my post if I find anything.











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