Well it looks like Im screwed this time other than looking at my iPod ratings in iTunes and manually rating them again.
But I did find this little app which will save me in the future.
Rating Writer 1.0 - MacUpdate
It will add your rating to the comments field of your songs, then you just create a Smart playlist like this:
"Comments" contains "1", "2", "3", "4" or "5" then you just have to select all in that playlist and right click "Set rating as *"
I cant get it to "Restore" the ratings (probably because the app was written for iTunes 4.5).
This method, will always leave your rating in your track and you will never lose your ratings again
Im looking into creating a script that will do this nightly on its own.
Anyone wanna help?