Factory restore and purchased content

Does purchased iTunes store content residing on the ATV survive a factory restore? Is there a way to back up favorites and account settings before doing a factory restore?
I’m trying to gather all the facts before ATVFlash 3.2 is released.

Bump.

Yes, performing a factory restore WILL erase everything on your Apple TV.

You should sync any purchased media back to your computer before restoring, otherwise you will lose it.